Wells Fargo has confirmed the sale of its private real estate investment banking division Eastdil Secured to Guggenheim Investments and Singapore-based Temasek for a rumoured $400m (£315m).
Wells Fargo will take a minority ownership in Eastdil and its public-market real estate investment bankers, who will form a real estate, gaming, lodging and leisure industry coverage group within the firm’s corporate and investment banking division.
The deal, first rumoured in March, is expected to complete in the fourth quarter of this year.
Eastdil will maintain its name and continue to be led by Benjamin Lambert as chairman, Roy March as chief executive, and Michael Van Konynenburg as president.
The firm will continue to have its US headquarters in New York City and Los Angeles and its European headquarters in London.
“We are excited to embark on this next chapter of Eastdil Secured’s evolution,” said Lambert.
“With our new long-term partners, we will continue to be the leader in our industry by providing our clients with a unique combination of real estate and capital markets expertise.”
March added: “Guggenheim Investments, on behalf of certain institutional clients, and Temasek represent ideal partners for Eastdil Secured as we embark on this next stage of growth.
“The eagerness of our professionals to acquire a meaningful stake in the future of Eastdil Secured, alongside these preeminent investors, underscores our shared confidence in our firm’s people and future.
“Most importantly, through this transaction, we will be better able to serve our clients with investments in enhanced technology, a broader footprint and deeper global relationships.
“Ultimately, our new ownership structure will allow us to continue providing truly independent, global advice and ensure our clients receive differentiated guidance in an increasingly competitive market.”
Rob Engel, co-head of Wells Fargo Corporate & Investment Banking, said the newly formed real estate group within Wells Fargo would continue to “leverage partnerships across the bank”.
The team will provide a full suite of investment banking and capital markets capabilities, including mergers and acquisition advisory solutions, as well as debt and equity origination and structuring.
The group will also continue its long-standing partnership with Wells Fargo’s commercial real estate group.
Temasek and Guggenheim are yet to comment.