Annaly Capital Management has entered into a definitive agreement to sell its commercial real estate business to Slate Asset Management.
The transaction is valued at $2.33 billion and represents substantially all of the assets that comprise the company’s commercial real estate business, which include equity interests, loan assets and CMBS. Certain Annaly employees who primarily support the commercial real estate business are expected to join Slate upon completion of the sale, including Timothy Gallagher, head of commercial real estate, and Michael Quinn, head of commercial investments.
Annaly expects the transaction to have an immaterial impact on key financial metrics, including book value, core earnings and the company’s dividend. Upon closing of the transaction, the company intends to use proceeds from the sale to repay its financing facilities related to the commercial real estate assets being sold and to purchase targeted assets in accordance with its capital
