Valley National Sells $1 Billion of Property Loans to Brookfield

Valley National Bancorp offloaded nearly $1 billion of property loans to Brookfield Asset Management Ltd.

The bank, which sold the performing loans at a discount of about 1% to par value, will remain responsible for customer-facing servicing duties, according to a statement Tuesday.

Lenders have been seeking to cut back on their exposure to commercial property after high rates pummeled valuations. Deutsche Bank AG completed the sale of nearly $1 billion of US commercial real estate loans last month. Earlier this year, Canadian Imperial Bank of Commerce struck deals to sell $316 million of US office loans at a ...