LBBW Successfully Completes Realignment in Commercial Real Estate Finance

LBBW has successfully completed its realignment in commercial real estate finance. Following the acquisition of Berlin Hyp in summer 2022, regulatory and legal incorporation marks a key milestone in the integration process. With effect from 1 August 2025, all activities in this sector are combined under the Berlin Hyp brand. The new real estate finance provider operates as an organizationally independent entity within LBBW.

“Bundling commercial real estate finance in a single powerful entity is a major step in the implementation of our corporate strategy. In doing so, we are significantly increasing our clout in one of our core business areas, strengthening LBBW’s market position as a leading financial institution, and delivering clear benefits for our customers,” says Rainer Neske, CEO of LBBW.

With a commercial real estate portfolio of around EUR 63 billion, a leading European provider with combined clout has come into being under the Berlin Hyp brand. The new Berlin Hyp provides a wider range of services with substantial market penetration in Germany, key European real estate markets, as well as North America. With a financing portfolio of around EUR 63 billion, it is one of the heavyweights in commercial real estate financing in Europe. Processes and management of business activities are simplified further by the new structure of Berlin Hyp as an integrated part of the LBBW Group. At the same time, synergies are being created on the earnings and cost sides, for instance by reducing duplication of structures. In addition, LBBW gives Berlin Hyp a firm foundation with its extensive expertise and financial strength as a universal bank.

“Our customers now have access to an integrated center of expertise for real estate financing – with extensive market knowledge, short communication channels, and integrated solutions. We will continue to foster and extend our close collaboration with the institutions of the Sparkassen-Finanzgruppe. I am looking forward to being able to shape the path of the new Berlin Hyp in tandem with my colleagues,” says Sascha Klaus, CEO of Berlin Hyp and Member of the LBBW Board of Managing Directors for real estate and project financing.

Under the merger, all activities of the real estate finance business are being transferred to the new entity under the Berlin Hyp brand. At the same time, the existing corporate and service functions of Berlin Hyp are being moved to LBBW. In the context of partial universal succession, LBBW is taking on all relationships of Berlin Hyp AG involving a creditor or debtor position with effect from 1 August 2025. One implication of this is that LBBW replaces Berlin Hyp AG as an issuer. This also entails the merging of the public and mortgage cover registers of both banks. The technical integration of Berlin Hyp into the LBBW system landscape is still ongoing, with completion expected in the next few months.

Your point of contact at Berlin Hyp

Nicole Hanke
Head of Communications and Marketing
Phone: +49 172 393 03 22
E-mail: nicole.hanke@berlinhyp.de
Website: https://www.berlinhyp.de