FDIC Signature Bridge Bank Receivership Sells 20 Percent Equity Interest in Entity Holding $16.8 Billion of Commercial Real Estate Loans
WASHINGTON –The Federal Deposit Insurance Corporation (FDIC), as receiver of Signature Bridge Bank, N.A. (FDIC-Receiver), today completed one of several transactions following the marketing of the $33 billion Commercial Real Estate (CRE) loan portfolio retained in receivership after the failure of Signature Bank, New York, New York.
Hancock JV Bidco L.L.C. (Hancock), an entity indirectly controlled by Blackstone, Inc. and other investors, paid $1.2 billion for a 20 percent equity interest in SIG CRE 2023 Venture LLC (Venture), a newly formed entity wholly owned by the FDIC-Receiver. The FDIC-Receiver will retain an 80 percent equity interest in the Venture. The FDIC-Receiver 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.
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.
As part of the transaction, the FDIC-Receiver provided financing equal to 50 percent 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 FDIC-Receiver announced the start of the marketing process in September 2023. The transaction was marketed on a competitive basis, with a seven-week due diligence period for qualified parties. The FDIC-Receiver offered the option of bidding on a 20 percent equity interest in a venture with optional financing, or bidding to acquire the CRE loans on a cash basis without financing. The Venture is expected to maximize the net present value of recoveries for the FDIC-Receiver.
The FDIC-Receiver expects to announce soon results for the rent-stabilized or rent-controlled multifamily loan portfolio transactions.
Read more about the FDIC-Receiver’s asset dispositions.
###
MEDIA CONTACT:
mediarequests@fdic.gov
FDIC: PR-105-2023
|
