(Bloomberg) -- Blackstone Inc. has bought a $1 billion mortgage portfolio from Deutsche Pfandbriefbank AG as the German real estate lender grapples with the impact of volatile commercial real estate markets.

The portfolio comprises of 11 loans secured against performing multifamily, office and hospitality assets in the US and UK, Blackstone said in a statement on Tuesday. Its real estate debt strategies unit is acquiring the assets on an all-cash basis, Blackstone said, without disclosing what it is paying for the loans.

Bloomberg News previously reported Blackstone’s interest in the portfolio. 

The sale comes as part of a broader strategy by PBB to manage its balance sheet through divesting assets. The lender became one of the most prominent examples of European banks hit by fears that troubles in the US commercial property markets are spreading to Europe.

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