HSH Nordbank enters property venture

Germany's HSH Nordbank and Aurelius Capital Management, an Austria-based structured credit investor, have entered into a joint venture over a new investment fund to capitalise on the boom in commercial real estate lending.

The joint venture, called Aurora Real Estate Partners, will acquire loans worth between €5m ($6.7m) and €50m. The loans will then be securitised and repackaged ahead of being sold on the capital markets as asset-backed bonds with varying risk profiles.

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