Nov. 17 (Bloomberg) -- Citigroup Inc., the third-biggest U.S. bank, sold servicing rights for a $2.6 billion real estate portfolio to CWCapital LLC as Chief Executive Officer Vikram Pandit continues to offload unwanted assets.
The portfolio includes about 2,200 multifamily loans from Fannie Mae, the mortgage firm under the control of the U.S. government, CWCapital said today in a statement. Shannon Bell, a spokeswoman for New York-based Citigroup, declined to give the sale price. The loans have an average unpaid principal balance of $1.2 million, Boston-based CWCapital, a subsidiary of CW Financial Services LLC, said in the statement.
The portfolio was among assets Pandit placed in the Citi Holdings unit, which he created to manage and sell the bank’s troubled assets in the wake of its $45 billion bailout in 2008. Pandit reduced assets in the unit to $289 billion at the end of September from $421 billion a year previously.
“Citi’s decision to sell the portfolio is consistent with its strategy of reducing assets in Citi Holdings, CitiGroup’s portfolio of non-core operating businesses and assets,” Bell said.
--Editors: William Ahearn, Steve Dickson
To contact the reporters on this story: Donal Griffin in New York at Dgriffin10@bloomberg.net
To contact the editor responsible for this story: Rick Green in New York at email@example.com