Freshfields Bruckhaus Deringer, Hogan Lovells and Mayer Brown have taken lead roles on the transfer of €173bn (£152bn) in distressed debt from German bank Hypo Real Estate (HRE) to a specially-created ‘bad bank’.

The deal sees the portfolio of loans and securities transferred to FMS Wertmanagement, which was set up to take on distressed assets from HRE, one of Germany’s largest commercial property lenders.