Wachovia shares boosted by loan sale
Shares of Wachovia Corp. rose Wednesday after a private real estate company reported buying up some of the bank’s troubled land and construction loans.
Shares rose 32 cents, or 2.2%, to $13.98 in afternoon trading. Shares are down about 62% for the year.
A joint venture led by LandCap Partners said Wednesday that it has completed the purchase of a multistate loan portfolio from the Charlotte, N.C.-based bank.
The loans are secured by 2,900 lots in different stages of development in a handful of states, including Florida and California paydayloan. Some of the loans are in distress, said LandCap Chief Executive Jeffrey Gault.
A Wachovia (WB, Fortune 500) spokeswoman said the company does not comment on transactions.
Gault said he hopes to have a continuing relationship with the bank, which has a minority interest in the joint venture.