The sale of Commerzbank has created a buzz within the industry, making many private equity firms and property lenders to stand up and take notice. The bidding is said to be around the GBP5 billion or US$7.5 billion price range for the property portfolio of the bank.

The bank is Germany's second biggest lender and was the recipient of bailout funds during the 2009 financial crisis. It is now in the process of cutting the size of its balance sheet and to be able to comply with the Basel III guidelines for banks. According to sources who spoke to Reuters on the condition of anonymity, Commerzbank was discussing the sale of its UK mortgage unit Hypthekenbank Frankfurt International or Eurohypo.

Another source told the Financial Times that Barclays is managing the sale and amongst those interested are Blackstone Group LP, Lone Star Funds and Starwood Capital. Other banks are also interested, such as Wells Fargo, JP Morgan Chase among the many.