Law advisement provided to LBBW concerning restructuring within commercial property financing sector
Landesbank Baden-Württemberg (LBBW) Completes Major Milestone in Berlin Hyp Integration
Landesbank Baden-Württemberg (LBBW) has reached a significant milestone in its integration of Berlin Hyp following its acquisition in 2022. The regulatory and legal incorporation phase has been completed as of July 2025, marking a key step in LBBW's realignment of commercial real estate finance.
The integration of Berlin Hyp, a prominent player in commercial real estate (CRE) finance with a €63 billion portfolio, is scheduled for 2025. At that time, Berlin Hyp will operate as a business unit within LBBW, maintaining its strong brand for combined CRE activities. Currently, Berlin Hyp functions as an independent division within LBBW, benefiting from LBBW’s universal banking platform.
The upstream merger of Berlin Hyp operations into LBBW’s organization is underway, formalizing the operational consolidation process. This integration is expected to generate annual synergies of about €100 million, approximately 4% of LBBW’s CRE segment earnings, by leveraging the expertise and market position of Berlin Hyp to strengthen LBBW’s position as Germany’s largest CRE lender.
Global law firm White & Case LLP advised LBBW on corporate, regulatory, employment, capital markets, real estate, and general banking law throughout this process. The White & Case team was led by partners Alexander Kiefner (Frankfurt) and Henning Berger (Berlin), and included partners and associates from various service areas and locations, such as Germany, the United Kingdom, Luxembourg, Belgium, France, the Czech Republic, the United States, and Poland.
In addition to the integration within LBBW, Berlin Hyp is continuing to innovate within real estate finance. A notable example is its successful issuance of a digital Mortgage Pfandbrief on blockchain technology in August 2024, demonstrating its leading role in fintech applications in the CRE bond market.
To continue Berlin Hyp's business in France, the Netherlands, and Poland, LBBW has established new branches and a representative office, respectively. The new real estate finance provider, combined with LBBW's activities under the Berlin Hyp brand, operates as an organizationally independent entity within LBBW.
Under the transaction, LBBW is taking on all Berlin Hyp AG's relationships involving a creditor or debtor position with effect from August 1, 2025. This significant milestone brings LBBW closer to becoming a European heavyweight in commercial real estate financing.
- The integration of Berlin Hyp, a significant player in the commercial real estate (CRE) finance industry, will improve Landesbank Baden-Württemberg (LBBW)'s position as Germany's largest CRE lender, following its acquisition in 2022.
- The expertise and market position of Berlin Hyp, with a €63 billion portfolio, is expected to generate annual synergies of about €100 million for LBBW by 2025.
- The regulatory and legal incorporation phase between LBBW and Berlin Hyp has been completed, marking a key step in LBBW's realignment of commercial real estate finance.
- Global law firm White & Case LLP, with partners Alexander Kiefner, Henning Berger, and associates from various service areas and locations, provided advice on corporate, regulatory, employment, capital markets, real estate, and general banking law throughout the integration process.
- Berlin Hyp has successfully demonstrated its leading role in fintech applications in the CRE bond market, issuing a digital Mortgage Pfandbrief on blockchain technology in August 2024.
- To expand Berlin Hyp's business in France, the Netherlands, and Poland, LBBW has established new branches and a representative office, respectively.
- LBBW will assume all Berlin Hyp AG's relationships involving a creditor or debtor position as of August 1, 2025, bringing the bank closer to becoming a European heavyweight in commercial real estate financing.
- Berlin Hyp will maintain its strong brand for combined CRE activities within LBBW following its integration in 2025, operating as a business unit within the organization.
- The upstream merger of Berlin Hyp operations into LBBW’s organization is underway, formalizing the operational consolidation process and strengthening LBBW's legal compliance.
- The integration of Berlin Hyp and its operations will provide LBBW with valuable intellectual property, contributing to its overall financial practice and business growth.
- LBBW's corporate team, composed of partners, associates, and counsel, will work together to ensure a smooth and efficient merger for both entities, while maintaining a strong focus on litigation and arbitration services.
- The integration of Berlin Hyp is expected to be finalized as planned in 2025, aligning with the capital markets news and industry trends, creating an environment conducive to future acquisitions and growth.
