The former trade union bank was taken over this year by CerberusCapital Management, which then determined the 16 properties to beexpendable. NAI Otto Immobilen, a member of the NAI Globalcommercial real estate network, was tapped to market the assets inpartnership with CB Richard Ellis. In a release, a Bawag spokesmancalls the conclusion "fair for both sides," and says the pricingwas reflective of market conditions. The proceeds will be rolledback into the bank to assist in its growth platform and to helpstabilize the nation's fifth largest bank. The institution incurredheavy losses in the past two years through failed cross-borderinvestment ventures, primarily in the Caribbean, and after losingmoney poured into a US financial services group, Refco, whoseproblems forced that company into bankruptcy.

The Bawag portfolio sale was "a huge success," maintains EugenOtto, head of NAI Otto, who notes that the process was completedwithin 90 days after his firm and CB Richard Ellis were awarded thehigh-profile assignment. Besides Vienna, the prime properties aresituated in Graz and Innsbruck. The bank is now assembling a secondportfolio that will be offered to the market in early 2008.

Based in Vienna, NAI Otto is a full-service commercial realestate firm with offices in Austria and Hungary. NAI Global is anetwork of 8,000 professionals operating from 375 offices in 55countries and yielding $45 billion last year in annual transactionvolume.