RNHB closes €1.3b property-backed loan portfolio buy

Dutch property financier RNHB has completed the purchase of a loan portfolio with an outstanding balance of €1.3 bn from Rabobank's property financing arm FGH Bank.

The deal, which was first announced in March, is in line with Rabobank's strategy to phase out FGH's activities over the course of 2018 after having transferred core loans to the parent bank in 2017.

The acquisition is in line with RNHB's strategy to expand its business through organic growth and acquisitions. 'By purchasing the FGH loan portfolio, RNHB is shaping its ambition to expand the business through organic growth and selective portfolio acquisitions,' commented Ivo Knottnerus, CEO of RNHB. 'This acquisition will enable us to continue increasing our current business in commercial property and to expand the markets in which we operate. We look forward to continuing the relationship with FGH customers and strengthening this relationship by doing business with them now and in the future.’

RNHB will 'continue to serve FGH’s customers', Rabo said in a statement.

RNHB was founded in 2008 through a merger between Rijnlandse Hypotheekbank and Nederlandse Hypotheekbank. At the time the commercial real estate lender was a unit of FGH. In 2016 the company, together with a €1.7 bn loan portfolio and 60 employees, was sold to a consortium of CarVal Investors and Vesting Finance, part of Arrow Global Group.

The transaction follows the sale by Rabobank's Bouwfonds investment management arm of a large part of its portfolio as part of Rabo's strategy to reduce its fund and asset management business.


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