HomeReal EstatePacWest Bancorp Shares Rise Following Agreement to Sell Lending Unit

PacWest Bancorp Shares Rise Following Agreement to Sell Lending Unit

Shares in PacWest Bancorp rose by 6.4% during premarket trading on Wednesday following the mid-sized lender’s announcement that it would sell its property lending unit later in the week. The company’s shares remain 68% lower since the start of the year despite the daily rise.

PacWest is expected to sell the unit to real estate financing firm Roc360, with the latter company confirming this news late on Tuesday. The unit offers loans to landlords and investors for the purpose of purchasing homes, which could be used for renovation or sale. The price of the deal remains undisclosed.

This is the second asset sale that PacWest has performed this week as the company looks to bolster its balance sheet. On Monday, PacWest announced the sale of $2.6 billion worth of real estate construction loans at a discounted price.

Despite remaining lower since the start of the year, PacWest’s stock has nearly tripled in value since slumping to a record low on May 4 after it was publicly revealed that the lender was exploring strategic alternatives in an effort to remain financially afloat.

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