Blackstone Real Estate Debt Strategies, along with Blackstone Real Estate Income Trust and funds affiliated with Rialto Capital, has teamed up with the Federal Deposit Insurance Corp (FDIC) in a newly formed joint venture. This collaboration came about with a 20% equity interest, worth $1.2 billion, paid by the groups.
The FDIC will maintain an 80% ownership in the joint venture named SIG CRE 2023 Venture LLC. The venture holds a senior mortgage loan portfolio valued at $16.8 billion, which was retained in receivership following the failure of Signature Bank, according to the agency. Additionally, the FDIC will provide financing that matches 50% of the venture's value.
Blackstone stated that the commercial real estate loan portfolio consists of over 2,600 first mortgage loans. These loans primarily cover retail, market rate multifamily, and office properties located in the New York metropolitan area. The majority of these loans are fixed-rate with low in-place coupons and strong in-place debt service coverage.
It is worth noting that the Canada Pension Plan Investment Board will participate through its subsidiary, CPPIB Credit Investments III Inc.
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