FDIC Completes Two Equity Interest Sales of Signature Bank Loan Portfolios

On Thursday, December 14th, the Federal Deposit Insurance Corporation (FDIC) announced the completion of the $1.2 billion sale of a 20% equity interest in the newly formed venture “SIG CRE 2023 Venture LLC,” which comprises approximately $16.8 billion of CRE loans collateralized by office, retail and market-rate multifamily properties only. Hancock JV Bidco LLC (Hancock), an entity indirectly controlled by Blackstone Group, along with the Canada Pension Plan Investment Board and Rialto Capital were the winning bidders. The transaction represents the “completion of one of several transactions following the marketing of $33 billion Commercial Real Estate (CRE) loan portfolio retain in receivership after the failure of Signature Bank.” In a separate pair of transactions, the joint venture of a Related Companies affiliate and affordable housing organizations Community Preservation Corp. and Neighborhood Restore HDFC won the bid for a 5% equity interest in about $5.8 billion in loans backed by rent-regulated and rent-stabilized loans. Included in the terms of both transactions are “requirements that facilitate the financial and physical preservation of underlying collateral” as part of the FDIC-Receiver’s “statutory obligation to maximize the preservation of the availability and affordability of residential rea property for low- and moderate-income individuals.”

Source:    https://www.fdic.gov/news/press-releases/2023/pr23105.html

Source:    https://www.fdic.gov/news/press-releases/2023/pr23106.html