Deutsche Banking AG (UNITED STATE) (NYSE: DB) has actually revealed plans to sell off commercial property loans worth $2 billion to an international private investment people , called TPG Capital.

 According to people familiar about the matter, the expanding real estate market of the US has instigated this deal. Hence, the deal will be extremely profitable for the Frankfurt-based bank.

It was additionally disclosed that the arrangement waits for regulatory authorization, which could be come in any time before the end of this month. Also, Deutsche bank owns a smaller sized share of the loan collection compared to TPG. 

The portfolio comprises of different financial instruments such as home loans for large shopping centers & corporate complexes originated by the German bank & public debt.

Deutsche Bank has actually undertaken this deal to improve the outlook of its financial statements in lieu of a stricter regulatory environment. The bank plans to dispose risk-weighted assets amounting to EUR250 billion ($313 billion) by the end of 2015. Since September 30, four-fifth of this figure, which amounts to nearly EUR200 billion, had already been taken care of. 

The US commercial real estate market has been on the increase. Throughout the third quarter, financial organizations provided out a total of $28 billion as Commercial Mortgage-Backed Securities (CMBS). Data assembled by Commercial Mortgage Warning shows that this quarter has damaged many records set in previous quarters after the real estate market accident in 2007.

One of the bank officials said in May that the bank is set to rank amongst the leading 4 lenders dealing in securities of the international commercial estate market. He also said that to improve the crumbled housing market, the bank will continue investing.

Private investment firms are moving toward the flourishing real-estate financing business. They are acquiring funds from investors who are bullish on this market. TPG Capital which specializes in tailored re-capitalizations & leveraged buyouts has gone one step ahead. The firm is gathering property dealers which help buyers & sellers, and landlords and tenants to associate with each other.

Last week, TPG took over a property brokerage firm based in Chicago, called DTZ, which has annual profits of 1.9 billion on average. By paying $1.05 billion, TPG obtained the company's 209 offices in 52 countries. TPG seeks for to merge DTZ with another Washington-based estate brokerage firm, called Cassidy Turley. The deal, worth $600 million, is scheduled to be finalized by the year-end. 

In September, TPG Capital Managing Partner Asia, Ben Gray, said in an interview: 'Cassidy Turley is a leading real estate services business in the US & will certainly match DTZ's existing very strong businesses in Asia & Europe along with DTZ's existing United States businesses'.

Additionally, globalization has actually had a serious impact on the housing industry, specifically on the volume of its mergers and purchases activities. With private-equity & investment company expanding their procedures in the worldwide markets, the need to partner with globally-established and well-heeled real-estate brokerage firms has actually increased simultaneously. Companies are looking for branded property dealers that will help them cope with the ups and downs of a new market.

The TPG-Deutsche loan collection is being looked after by the bank's global head of commercial real estate & head of risk for structured finance, Jonathan Pollack. He is a 'Super Star' of the commercial property business. In addition, he is the one who helped initiate Deutsche's commercial real estate procedures in Europe & managed the Bank's European CMBS trading desk.