NEW YORK–Wells Fargo & Company announced the sale of Eastdil Secured (Eastdil), its private real estate investment banking division. This follows Eastdil’s management-led recapitalization, in partnership with Guggenheim Investments, on behalf of certain institutional clients, and Temasek, a global investment company headquartered in Singapore.
Subsequent to the sale, Wells Fargo will retain the public market real estate investment bankers of Eastdil, who will form the Real Estate, Gaming, Lodging, and Leisure (REGAL) industry coverage group within Corporate & Investment Banking (CIB). Additionally, Wells Fargo will retain a minority ownership interest in Eastdil.
“This newly dedicated Real Estate, Gaming, Lodging, and Leisure investment banking coverage group will leverage partnerships across the bank, with a deep pool of talent and expertise, to serve clients in these key industries and their complex financial needs,” said Rob Engel, co-head of Wells Fargo Corporate & Investment Banking.
The REGAL team will provide a full suite of investment banking and capital markets capabilities including mergers and acquisition advisory solutions, as well as debt and equity origination and structuring. The group will also continue its long-standing partnership with Wells Fargo’s Commercial Real Estate (CRE) group, the top commercial real estate lender in the country with a commercial real estate portfolio totaling approximately $143.5 billion.
The CRE group delivers a comprehensive platform of banking, financing and servicing solutions for commercial real estate companies inclusive of: balance sheet lending; CMBS origination, distribution and loan servicing; agency financing for multifamily assets; financing for real estate investment trusts (REITS); and debt and equity capital for the affordable housing industry.
“The breadth and depth of Wells Fargo’s Commercial Real Estate platform is unmatched in the industry, and our CRE team looks forward to partnering closely with the new REGAL investment banking coverage group to continue delivering a comprehensive and seamless suite of financing solutions and advice to commercial real estate clients,” said Mark Myers, head of Wells Fargo Commercial Real Estate.
Pending regulatory approvals, the transaction is expected to close in the fourth quarter of 2019. Terms of the transaction have not been disclosed. Wells Fargo Securities served as the financial advisor to Wells Fargo with Sullivan & Cromwell LLP serving as legal counsel.