April 22 (Bloomberg) -- FMS Wertmanagement AoeR, the German bad bank formed to wind down parts of Hypo Real Estate Holding AG, will start the sale of the servicing unit that administers about 119 billion euros ($164 billion) of assets.
FMS invited interested parties to bid for the unit, named FMS Wertmanagement Service GmbH, by June 2, it said in a statement on its website today.
The servicing division administers loans, bonds and other financial products on behalf of FMS and was transferred to Munich-based FMS from Hypo Real Estate on orders by the European Commission last year. The move included employees from pbb Deutsche Pfandbriefbank, the continued business of Hypo Real Estate and Depfa Bank Plc, which is closed to new customers.
The servicing unit has a contract until the end of 2029 to administer the FMS assets, which can be canceled at the end of 2024. Partial “limited” cancellations are possible earlier, according to the offer document.
FMS paid the servicing unit about 30 million euros in fees in the fourth quarter, it said. FMS, led by Chief Executive Officer Christian Bluhm, was formed in 2010 as part of a bailout for Hypo Real Estate, which is also selling Dublin-based Depfa Bank under a restructuring agreement with the European Union.
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