Clifford Chance Advises Aareal Bank on €2 Billion Real Estate Securitisation
Global law firm Clifford Chance has provided legal advice to Aareal Bank AG on its first synthetic SRT securitisation of commercial real estate loans, totaling €2 billion. This transaction allows Aareal to free up capital for new investments.
Real EstateSecuritisationAareal BankClifford ChanceFinancial MarketsReal EstateNov 04, 2025
The transaction was notably over-subscribed and was executed following a competitive bidding process. Aareal Bank simultaneously entered into a financial guarantee with insurers and issued a credit-linked note to an asset manager. This complex arrangement not only enhances Aareal's financial flexibility but also underscores the bank's commitment to innovation in the financial sector.
The Clifford Chance team was led by partner Oliver Kronat and senior counsel Kerstin Schaepersmann, who played a pivotal role in the transaction. Senior associates Antonia Walter and Moje Salzmann also contributed significantly to the project, all of whom are part of the Global Financial Markets division in Frankfurt. Additionally, partner Olaf Mertgen and counsel Steffen Waadt provided expert advice on tax matters, ensuring that all legal and financial aspects of the transaction were meticulously addressed.
Aareal Bank AG, a leading provider of structured finance solutions, has a strong track record in the commercial real estate sector. This securitisation marks a significant milestone in the bank's strategic growth plan, demonstrating its ability to navigate complex financial landscapes and secure favorable terms for its investors. The transaction not only frees up capital but also enhances Aareal's reputation as a forward-thinking financial institution.
Clifford Chance, a renowned global law firm, has a long-standing reputation for delivering high-quality legal services across a wide range of industries. The firm's expertise in financial markets and tax law was crucial in ensuring the success of this transaction. The team's ability to manage the intricate details of the securitisation process, from legal structuring to regulatory compliance, played a vital role in achieving a positive outcome for Aareal Bank.
In summary, the successful execution of this synthetic SRT securitisation underscores the importance of strategic partnerships between financial institutions and legal experts. Aareal Bank AG's collaboration with Clifford Chance has not only unlocked new capital but also set a precedent for future transactions in the commercial real estate sector.
Frequently Asked Questions
What is a synthetic SRT securitisation?
A synthetic SRT (Significant Risk Transfer) securitisation is a financial transaction where a bank transfers the risk of a portfolio of loans to investors, typically through the issuance of credit-linked notes or other financial instruments. This allows the bank to free up capital and invest in new opportunities.
Who advised Aareal Bank on this transaction?
Clifford Chance, a global law firm, advised Aareal Bank AG on its first synthetic SRT securitisation of commercial real estate loans.
What is the total volume of the securitised portfolio?
The total volume of the securitised portfolio of performing commercial real estate loans is €2 billion.
How did the transaction benefit Aareal Bank?
The transaction allowed Aareal Bank to free up capital, which can be reinvested in new business opportunities and growth initiatives.
What expertise did Clifford Chance bring to the transaction?
Clifford Chance provided legal and tax expertise, ensuring that all aspects of the securitisation were managed effectively, from legal structuring to regulatory compliance.
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