Suncorp, the Australian banking, insurance, investment and wealth management company, has announced that it will be selling its LJ Hooker real estate unit to US private equity player Janusz Hooker, The Australian reports.

Mr Hooker is the grandson of the real estate chain's founder and heads the Asian operations of WP Carey, a US-based private equity firm. The publication estimated the sale to be worth A$67 million ($58 million).

The moves comes alongside Suncorp's plan to distance itself from the property sector and echoes prevailing sentiment among Australia's big four banks, which have been scaling back on lending activity due to the global financial crisis.

In an email to WealthBriefing Asia, a Suncorp spokesperson said, "In May 2009, Suncorp’s banking business advised the market and customers that it was no longer going to lend in those portfolios that are wholesale funding intensive, i.e. major corporate development projects.  This was in response to higher costs of wholesale funding following the global financial crisis, particularly for A-rated banks, such as Suncorp."

The financial services group also clarified that it will not be cutting all real estate ties.

"Suncorp’s banking business is not exiting property industry lending completely but it will focus on lending that is not as wholesale funding intensive and which is within its risk tolerance guidelines," the company said.