WASHINGTON –In its role as receiver for the failed Signature Bank in New York, the FDIC said it has completed one of several transactions following the marketing of the $33 billion commercial real estate (CRE) loan portfolio.
According to FDIC, Hancock JV Bidco, an entity indirectly controlled by Blackstone and other investors, paid $1.2 billion for a 20% equity interest in SIG CRE 2023 Venture a newly formed entity wholly owned by the FDIC-receiver. The FDIC-Receiver will retain an 80% equity interest in the Venture.
The FDIC said it has contributed to the venture approximately $16.8 billion in CRE loans collateralized by office, retail and market-rate multifamily properties. The venture does not hold any loans collateralized by rent-stabilized or rent-controlled multifamily properties, the FDIC said.
According to the federal bank regulator, Hancock will be responsible for the management, servicing and liquidation of the Venture’s assets. Hancock will also be required to manage the portfolio in accordance with the terms of the transaction, subject to comprehensive monitoring and oversight by the FDIC-receiver.
Additional Details
As part of the transaction, the FDIC-receiver said it provided financing equal to 50% of the Venture’s value, resulting in the Venture issuing a purchase money note in the original principal amount of approximately $6 billion to the FDIC-Receiver.
The failure of several banks earlier this year has caused a significant strain on the FDIC deposit insurance fund’s reserves, with the agency recently announcing plans to replenish the fund.
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