Mitsubishi UFJ Financial Group Inc. is seeking to acquire about $3.7 billion of U.S. real-estate loan assets from Deutsche Bank AG, two people with knowledge of the matter said.
The bank’s San Francisco-based UnionBanCal Corp. unit plans to buy non-recourse loans for commercial property development, mainly on the U.S. East Coast, from the German bank, one of the people said, asking not to be identified because the talks are private.
Mitsubishi UFJ, Japan’s biggest bank, is seeking to expand loan assets abroad to counter anemic lending demand at home as European rivals scale back to comply with tighter capital rules. The deal would follow the 3.8 billion-pound ($5.8 billion) acquisition in 2010 of Royal Bank of Scotland Group Plc’s project financing assets in Europe, the Middle East and Africa.
Mitsubishi UFJ rose 3.6 percent to 629 yen as of 10:44 a.m. in Tokyo today, outpacing the 2.5 percent rise in the benchmark Nikkei 225 Stock Average.
Takayuki Inoue, a Tokyo-based spokesman for Deutsche Bank, and Tomohiro Kohsaka, a spokesman for the Japanese lender, declined to comment on the deal.
The deal would give Tokyo-based Mitsubishi UFJ a portfolio of loans for commercial property mostly in New York and Chicago, the Nikkei Newspaper reported earlier today. Some Deutsche Bank sales staff would join the UnionBanCal unit, the report said, without citing sources.