Aareal Bank AG is discussing a potential acquisition of fellow private equity-backed real estate lender Hamburg Commercial Bank AG, people familiar with the matter said. HCOB's investors including Cerberus Capital Management are working with advisers on a possible sale and talks between the two German banks are underway, according to the people. A deal could come together later this year, they said. Bloomberg News reported late last year that HCOB was exploring a sale and seeking a valuation above its tangible common equity of €3.3 billion ($3.8 billion).

Deliberations are ongoing and there's no certainty they'll result in a deal, the people said, asking not to be identified discussing confidential information. Aareal Bank's backers Advent and Centerbridge Partners are supportive of deliberations around a potential acquisition of HCOB, the people said. At the same time, Advent and Centerbridge are reaching out to potential advisers about a so-called dual track process that could kick off next year and result in a sale or initial public offering of Aareal Bank, some of the people said.

Representatives for Aareal Bank, Advent, Centerbridge and HCOB declined to comment. A spokesperson for Cerberus didn't provide comment. Advent and Centerbridge completed their acquisition of Aareal Bank in 2023 after a drawn-out pursuit of the lender. Aareal Bank's business is split into two segments: structured property financing, and banking and digital solutions. Aareal Bank's net profit of €126 million in the first half of the year was around 5% lower than the same period in 2025. Net profit at HCOB rose more than a fifth to €168 million.