Ashurst has picked up a lead role advising on the potential £4bn sale of a portfolio of UK property loans by Germany's Commerzbank. 

The bank is in discussions to sell its Eurohypo UK operation to US bank Wells Fargo and private equity group Lone Star, with the loan portfolio valued at between £3bn and £5bn.

According to reports in the Financial Times, the potential acquirers would divide the portfolio between them, with Lone Star to take on the distressed loans and Wells Fargo the performing deals. 

Should it go ahead, the deal would reportedly be one of the largest disposals of real estate debt by a European bank since the start of the financial crisis. 

Ashurst finance partner Lee Doyle is leading the team advising Commerzbank, working alongside corporate partner Nick Cheshire and finance partner Rob Aird. The firm has been advising Commerzbank on the sale since November last year. 

Meanwhile Allen & Overy is co-ordinating the joint bid for the acquirers, with Dechert playing a smaller role on behalf of Wells Fargo. 

Ashurst has a longstanding relationship with Commerzbank through its German operations. In 2009, the firm's London and Frankfurt teams advised on the £225m acquisition of the UK operations of Kleinwort Benson Private Bank by RHJ International from Commerzbank.