MUFG acquires Deutsche Bank real estate subsidiary

Japan's largest financial group buys US$3.7 billion loan portfolio of UnionBanCal.

Following the deal, UnionBanCal will become the ninth biggest bank in the U.S. in commercial real estate lending. Market leaders are Wells Fargo and Bank of America.

UnionBanCal CEO Masashi Oka said this important strategic acquisition showed how Mitsubishi UFJ Financial Group could deploy capital into high-quality assets thanks to the strong capital and U.S. dollars deposits provided to UnionBanCal.

This is the latest in a series of acquisitions by MUFG amid a string of disposals by Deutsche Bank. MUFG acquired the loan portfolio and loan origination platform of UnionBanCal based in San Francisco.

MUFG is expanding its U.S. presence by increasing the size of UnionBanCal via its 23% shareholding in Morgan Stanley. It is also keen on acquiring European assets, including a deal to buy project finance assets from the Royal Bank of Scotland.