FRANKFURT, July 12 (Reuters) - German state-backed lender...

FRANKFURT, July 12 (Reuters) - German state-backed lender NordLB is preparing a sale of its property lender Deutsche Hypothekenbank as it seeks to repair its balance sheet following heavy writedowns related to its exposure to bad shipping loans, people close to the matter said.

The bank has tasked Rothschild with advising it on options for its restructuring, which could include the sale of Deutsche Hypo as early as later this year, the people said, adding that no decisions have been taken so far.

NordLB will only sell profitable Deutsche Hypo if the effect on the bank's capitalisation would be large enough, they added.

"All of the bank's units have been put under scrutiny," a NordLB spokesman said, declining to elaborate further. Rothschild declined to comment.