FDIC-run Signature Bridge Bank sells 20% stake of $16.8 billion real estate portfolio
Reuters
Published Dec 14, 2023 05:44PM ET
Updated Dec 15, 2023 12:30PM ET
(Reuters) -The Federal Deposit Insurance Corp-run Signature Bridge Bank said on Thursday it has sold 20% of its equity stake in a venture that holds a $16.8 billion real estate loan portfolio, which it had retained in receivership of the failed bank.
Blackstone (NYSE:BX) Real Estate Income Trust, Blackstone Real Estate Debt Strategies, Canada Pension Plan Investment Board and Rialto Capital paid $1.2 billion for a 20% equity stake in the venture, the investors said in a separate statement.
"Blackstone's extraordinary real estate insights and credit expertise positioned us to underwrite about $17 billion of senior mortgage loans, allowing us to acquire the entire commercial real estate loan portfolio at an attractive basis," Jonathan Pollack, global head of Blackstone Real Estate Credit, said in a statement.
Earlier this year, Blackstone, one of the world's biggest non-bank lenders, said this was a "golden moment" to expand its credit business after lenders were retrenching in the wake of the regional banking crisis.
Investor worries about the health of the commercial real estate sector has also prompted lenders to limit their exposure to the industry, especially as they grapple with stricter regulatory capital requirements and a potential slowdown in loan demand.
A significant chunk of Signature Bank (OTC:SBNY)'s loans and almost all of its deposits were bought by a unit of New York Community Bancorp (NYSE:NYCB) in March, in a deal put together by the FDIC.
Signature Bridge Bank was created after state regulators closed New York-based Signature Bank in March and the FDIC took control.
In September, the FDIC had announced the start of a marketing process for the nearly $33 billion Commercial Real Estate (CRE) loan portfolio it retained.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.