Wells Fargo Announces Sale of Eastdil Secured
June 11 2019 - 07:00AM
Business Wire
Bank to retain Eastdil’s public market investment banking and
capital markets business to form a new Real Estate, Gaming, Lodging
and Leisure industry coverage group
Wells Fargo & Company (NYSE: WFC) today 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.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $1.9 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
investment and mortgage products and services, as well as consumer
and commercial finance, through 7,800 locations, more than 13,000
ATMs, the internet (wellsfargo.com) and mobile banking, and has
offices in 37 countries and territories to support customers who
conduct business in the global economy. With approximately 259,000
team members, Wells Fargo serves one in three households in the
United States. Wells Fargo & Company was ranked No. 26 on
Fortune’s 2018 rankings of America’s largest corporations. News,
insights and perspectives from Wells Fargo are also available at
Wells Fargo Stories.
Cautionary Statement about Forward-Looking Statements
This News Release may include forward-looking statements about
our future financial performance and business. Because
forward-looking statements are based on our current expectations
and assumptions regarding the future, they are subject to inherent
risks and uncertainties. Do not unduly rely on forward-looking
statements as actual results could differ materially from
expectations. Forward-looking statements speak only as of the date
made, and we do not undertake to update them to reflect changes or
events that occur after that date. For information about factors
that could cause actual results to differ materially from our
expectations, refer to our reports filed with the Securities and
Exchange Commission, including the “Forward-Looking Statements”
discussion in Wells Fargo’s most recent Quarterly Report on Form
10-Q as well as to Wells Fargo’s other reports filed with the
Securities and Exchange Commission, including the discussion under
“Risk Factors” in our Annual Report on Form 10-K for the year
ended December 31, 2018, available on its website
at www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20190611005430/en/
MediaJessica R. Ong, 1-212-214-8242Jessica.R.Ong@wellsfargo.com@JessOngWF
or
Investor RelationsJohn Campbell,
1-415-396-0523john.m.campbell@wellsfargo.com
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