The second largest private bank in Germany, HYPOVEREINSBANK, is to group its national and international real estate activities in a new banking entity that is expected to become the largest real estate finance company in Europe with a balance sheet total of around EUR 200 billion. Initially, the bank will merge three subsidiaries this year: the NUEREMBERGHER HYPOTHEKENBANK, the SUEDDEUTSCHE BODZENCREDIT BANK and the WESTFAELISCHE HYPOTHEKENBANK within its subsidiary BAYERISCHE HANDELSBANK. In 2002, this will be enlarged with the real estate financing business held directly by HYPOVEREINSBANK.