Citi unloads rights to $2.6B portfolio

Citigroup has sold the servicing rights for a $2.6 billion real estate portfolio, including about 2,200 multi-family loans, to CWCapital, Bloomberg News reported, as the bank’s CEO Vikram Pandit continues offloading troubled assets. Citigroup declined to comment on what CWCapital paid for the portfolio.

“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,” said a spokesperson for Citigroup.

The portfolio includes about 2,200 multi-family loans from Fannie Mae with an average unpaid principal balance of $1.2 million, CWCapital said today in a statement.

Pandit has been reducing the bank’s assets at rapid pace over the last year. By the end of September, he had limited assets in the bank’s Citi Holdings unit, created to manage and sell the bank’s troubled assets after its $45 billion bailout in 2008, to $289 billion. Assets in the unit totaled $421 billion a year previous. [Bloomberg]