The Düsseldorfer Hypothekenbank AG, also known as DüssHyp, is a mortgage bank based in

Düsseldorf Düsseldorf ( , , ; often in English sources; Low Franconian and Ripuarian: ''Düsseldörp'' ; archaic nl, Dusseldorp ) is the capital city of North Rhine-Westphalia, the most populous state of Germany. It is the second-largest city in th ...

that specializes in government and real estate financing. (Until the mortgage bank law was abrogated, this term referred to a

private law Private law is that part of a civil law legal system which is part of the ''jus commune'' that involves relationships between individuals, such as the law of contracts and torts (as it is called in the common law), and the law of obligations ( ...

credit institution granting long-

term loan {{Unreferenced, date=March 2018 A term loan is a monetary loan that is usually repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usua ...

s secured by mortgages and loans to public authorities.) Refinancing takes place through issuing bonds via the capital market. The bank specializes in commercial

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more general ...

financing. It only engages in direct business to a limited extent; the focus is on syndicate business.

History

The institute was founded by the entrepreneur :de:Wolfgang Schuppli . As a consequence of the world-wide financial crisis in 2007, it was necessary for the deposit guarantee fund ( :de:Einlagensicherungsfonds) of the Federal Association of German Banks (BdB) to take over the shares in 2008. It sold them in 2010 to LSF5 German Investments II, L.P. in

Delaware Delaware ( ) is a state in the Mid-Atlantic region of the United States, bordering Maryland to its south and west; Pennsylvania to its north; and New Jersey and the Atlantic Ocean to its east. The state takes its name from the adjacent Del ...

USA The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

(94%) and to LSF5 Riverside Ltd. & Co KG in

Frankfurt Frankfurt, officially Frankfurt am Main (; Hessian: , "Frank ford on the Main"), is the most populous city in the German state of Hesse. Its 791,000 inhabitants as of 2022 make it the fifth-most populous city in Germany. Located on its na ...

Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwe ...

(6%) companies belonging to the Lone Star Group. This group was also a shareholder of the Corealcredit Bank. Schuppli later sued the BdB and other defendants for approx.

€ The euro sign () is the currency sign used for the euro, the official currency of the eurozone and unilaterally adopted by Kosovo and Montenegro. The design was presented to the public by the European Commission on 12 December 1996. It consists o ...

500 million in damages because the sale came only through threat and coercion. The charge was dismissed in the first instance. The balance sheet total decreased to € 11 billion as of 30 June 2013 compared to the end of the previous year. The accumulated loss amounted to € 516.4 million in mid-2013; This result was essentially based on the loss carryforward, thus largely coming from the result of earlier financial years. In December 2013, with the maturity of a bond issued by the Düsseldorfer Hypothekenbank of 1.1 billion, the last remaining liquidity guarantee of the SoFFin was repaid. The Lone Star Group - allegedly - sold their shares to the MainFirst founder Patrick Bettscheider and the British investment company Attestor Capital. However, it became known in March 2015 that the Düsseldorfer Hypothekenbank once again faced bank failure in the wake of the

Hypo Alpe Adria Heta Asset Resolution A.G. is a "bad bank" that was the residual asset of the original Hypo Alpe-Adria-Bank International A.G., which was dismantled in 2014. It was owned by the Government of Austria. The bad bank contained the leasing subsidiary ...

crisis, implying that the ownership status was unclear. On 15 March 2015, the Federal Association of German Banks announced that the private-sector deposit guarantee fund provided a guarantee for the so-called

Heta Heta is a conventional name for the historical Greek alphabet letter Eta (Η) and several of its variants, when used in their original function of denoting the consonant . Overview The letter Η had been adopted by Greek from the Phoenician lett ...

bonds in order to eliminate the acute risks. The aim is to take over the bank through the Deposit Guarantee Fund. According to its 2017 Annual Report, an investment company of the Deposit Guarantee Fund is the sole shareholder. The Bank is a member of the Association of German Banks ( :de: Bundesverband deutscher Banken )and the

Verband deutscher Pfandbriefbanken The Association of German Pfandbrief Banks (german: Verband deutscher Pfandbriefbanken, ''vdp'') is the interest group of the Pfandbrief (covered bond) banks. It represents the foremost financiers for residential and commercial construction as wel ...

Key figures

References

External links

Official Website
{{Authority control Banks of Germany Corporate finance Companies based in Düsseldorf 1997 establishments in Germany