July 21st, 2024

CPPIB part of joint venture to buy stake in Signature Bank loan portfolio

By The Canadian Press on December 15, 2023.

The Canada Pension Plan Investment Board is part of a group that has signed a deal to buy a 20 per cent stake in a joint venture that will hold a US$16.8-billion commercial mortgage loan portfolio of Signature Bank, which failed earlier this year. John Graham, President & CEO of the CPPIB, speaks at the Canadian Chamber of Commerce’s annual general meeting and convention in Ottawa on Oct. 14, 2022. THE CANADIAN PRESS/Sean Kilpatrick

TORONTO – The Canada Pension Plan Investment Board is part of a group that has signed a deal to buy a 20 per cent stake in a joint venture that will hold a US$16.8-billion commercial mortgage loan portfolio of Signature Bank, which failed earlier this year.

CPPIB, together with Blackstone Real Estate Debt Strategies, Blackstone Real Estate Income Trust Inc. and Rialto Capital, have agreed to acquire the stake for US$1.2 billion.

The U.S. Federal Deposit Insurance Corp., which has held the portfolio since the bank’s failure, will maintain an 80 per cent stake in the venture.

The portfolio includes more than 2,600 first mortgage loans on a variety of properties primarily located in the New York metropolitan area.

Blackstone will be the lead asset manager of the portfolio and Rialto Capital will act as the loan servicer and operating partner.

New York-based Signature Bank was one of the largest U.S. banks to fail earlier this year.

This report by The Canadian Press was first published Dec. 15, 2023.

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