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FRANKFURT-Commerzbank is being forced to sell its property finance arm, Eurohypo. The European Commission is requiring Germany’s second largest bank to dispose of the unit in order to receive $13.6 billion in state aid, according to a report in PropertyEU.

Eurohypo, an international real estate and public financing firm with offices in Germany, Europe, Asia and the US, reported a $1.9 billion loss by year-end 2008. Eurohypo now has restructuring plans to focus on major clients in 10 markets worldwide, cut 390 full-time positions and cut one-third of the current cost base.

Commerzbank is working on an all-company restructuring plan, which the firm has titled Roadmap 2012. The sale of Eurhypo is only one aspect of the company’s plans for the future. It also plans to focus the majority of its efforts on Germany-related clients and dispose of non-core assets.

To read the report in PropertyEU click here.

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