Blackstone Ventures Sells Signature Loans Worth $1.8 Billion

(CTN News) – There is a group of investors, led by Blackstone Inc., seeking to sell roughly $1.8 billion worth of commercial property loans that were made by the failed Signature Bank in a joint venture led by Blackstone Inc.

Rialto Capital and the Canada Pension Plan Investment Board are also supporting this venture. This venture aims to promote performing loans, backed by apartment buildings, and is being supported by Rialto Capital.

The information was provided by people familiar with the matter, who asked not to be identified citing private information to protect their identities.

Blackstone and its partners acquired a 20 percent stake in a joint venture that manages approximately $17 billion worth of Signature loans that are insured by the Federal Deposit Insurance Corporation last December. This venture was supported by the FDIC with an 80% stake and 50% of the venture’s value was financed by the FDIC.

Jones Lang LaSalle Inc., one of Blackstone’s partners who advised the company on the previous deal with the FDIC, is also marketing the new deal on behalf of the bank.

A spokesperson for Blackstone, which took part in the deal through Blackstone Real Estate Debt Strategies and Blackstone Real Estate Income Trust, as well as the FDIC declined to comment on the matter. A request for comments was not responded to by spokespersons for CPPIB, Rialto and JLL.

The sale of these loans may be of interest to investors, especially as they grapple with the fact that higher borrowing costs have led to a decline in property values in the commercial real estate market as a result of higher borrowing costs.

If sales of buildings such as offices and apartments were to increase, then investors would be better able to understand the value of these buildings.

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