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BREDS, BREIT, CPP Investments and Rialto Capital acquire 20% stake in CRE loan portfolio of former Signature Bank
Transactions - DECEMBER 15, 2023

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BREDS, BREIT, CPP Investments and Rialto Capital acquire 20% stake in CRE loan portfolio of former Signature Bank

by Andrea Zander

Blackstone Real Estate Debt Strategies (BREDS), Blackstone Real Estate Income Trust Inc. (BREIT), Canada Pension Plan Investment Board (CPP Investments), through its subsidiary CPPIB Credit Investments III Inc., and funds affiliated with Rialto Capital have entered into a newly formed joint venture with the Federal Deposit Insurance Corporation (FDIC) and acquired a 20 percent equity stake for $1.2 billion in a venture that holds a $16.8 billion senior mortgage loan portfolio retained in receivership after the failure of Signature Bank. The FDIC is maintaining an 80 percent ownership stake in the venture and provided financing equal to 50 percent 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. The loans are predominantly performing and encompass a wide range of credit profiles. Approximately 90 percent

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