Wells Fargo has announced the sale of Eastdil Secured, its private real estate investment banking division.
The sale 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.
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.
In a statement issued Monday, Eastdil Secured said, “Our paramount goal in completing this transaction is to position the firm to even better serve our clients in the ever-changing commercial real estate market.
“Through this transaction, we will be able to accelerate growth, increase investments in technology, expand our footprint and maintain deeper global relationships.”
“We are as confident as ever in our ability to reach new heights and deliver unparalleled service and expertise as a standalone entity.”
Pending regulatory approvals, the transaction is expected to close in the fourth quarter of 2019.
Eastdil Realty was formed in 1967 by Benjamin V. Lambert and the Investment Banking Firm of Eastman Dillon Union Securities as the first Real Estate Investment Banking Company in the United States,
The company has led some of the biggest real estate deals in US history, including the $5 billion Harry Helmsley portfolio disposition and the $1.4 billion sale of the GM Building.