FRANKFURT (Reuters) - Commerzbank (>> Commerzbank AG) is hiving off loan portfolios worth 3.4 billion euros (2 billion pounds) as it seeks to streamline its asset sheet and free up capital to comply with tougher bank rules, two people familiar with the transaction said.

Germany's second biggest lender is aiming to sell real estate loans in Eastern Europe, Turkey and Scandinavia worth 2.7 billion euros as well as non-performing German mortgages worth 700 million euros, they added.

A transaction is expected to be finalised in June, one of the sources said.

Investors specialised in troubled loans - such as Cerberus, Lone Star and Oaktree (>> Oaktree Capital Group LLC) - have shown interest in the assets, the sources said.

Commerzbank and the funds declined to comment.

(Reporting by Alexander Hübner; additional reporting by Arno Schuetze; Editing by Kirsti Knolle)

Stocks treated in this article : Oaktree Capital Group LLC, Commerzbank AG