Blackstone, Canada Pension Plan in $1.2 Billion Joint Venture With FDIC

By Stephen Nakrosis

Two units of Blackstone Real Estate Debt Strategies, Blackstone Real Estate Income Trust, Canada Pension Plan Investment Board and funds affiliated with Rialto Capital on Thursday entered a newly formed joint venture with the Federal Deposit Insurance Corp.

The groups paid $1.2 billion for a 20% equity interest in the JV, the FDIC said.

The FDIC will retain an 80% ownership in the JV, SIG CRE 2023 Venture LLC, which holds a $16.8 billion senior mortgage loan portfolio that was retained in receivership after the failure of Signature Bank, the agency said. The FDIC also said it will provide financing equal to 50% of the venture's value.

"The commercial real estate loan portfolio comprises more than 2,600 first mortgage loans on retail, market rate multifamily and office properties primarily located in the New York metropolitan area," Blackstone said. It added that about 90% of the loans are "fixed rate with low in-place coupons and strong in-place debt service coverage."

Canada Pension Plan Investment Board is participating through its subsidiary CPPIB Credit Investments III Inc.

Write to Stephen Nakrosis at [e-mail]

(END) Dow Jones Newswires

December 14, 2023 18:09 ET (23:09 GMT)

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