Starwood Property (STWD) to Acquire LNR Property in $1.05B Deal
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Starwood Property Trust, Inc. (NYSE: STWD) and Starwood Capital Group, a leading global private investment firm, on behalf of Starwood Distressed Opportunity Fund IX, today announced that they have entered into a definitive agreement to acquire LNR Property LLC ("LNR") for a total purchase price of $1.05 billion in cash.
LNR, founded in 1969, is a leading diversified real estate investment, finance, management and development firm with over 550 employees located in 12 offices throughout the US and Europe.
Under the terms of the agreement, Starwood Property Trust will acquire the following LNR business segments for a total purchase price of $856 million:
* US Special Servicer – the largest US special servicer with over $131 billion in loans under management and real estate owned;
* US Investment Securities Portfolio – a portfolio of legacy whole loans, CMBS and CDO investments;
* Archetype Mortgage Capital – a commercial real estate conduit loan origination platform designed to provide unique financing solutions throughout the US;
* Archetype Financial Institution Services – an acquirer, manager, and servicer of portfolios of small balance commercial loans and real estate assets;
* LNR Europe – which consists of Hatfield Philips, the largest independent primary and special servicer in Europe, and LNR European Investment Fund, a European CRE debt fund; and
* Auction.com – 50 percent of LNR's interest in the nation's leading real estate exchange selling residential and commercial real estate via auction.
In addition, Starwood Capital Group will acquire for $197 million both LNR's US Commercial Property Group and the other 50 percent of LNR's ownership interest in Auction.com.
LNR, founded in 1969, is a leading diversified real estate investment, finance, management and development firm with over 550 employees located in 12 offices throughout the US and Europe.
Under the terms of the agreement, Starwood Property Trust will acquire the following LNR business segments for a total purchase price of $856 million:
* US Special Servicer – the largest US special servicer with over $131 billion in loans under management and real estate owned;
* US Investment Securities Portfolio – a portfolio of legacy whole loans, CMBS and CDO investments;
* Archetype Mortgage Capital – a commercial real estate conduit loan origination platform designed to provide unique financing solutions throughout the US;
* Archetype Financial Institution Services – an acquirer, manager, and servicer of portfolios of small balance commercial loans and real estate assets;
* LNR Europe – which consists of Hatfield Philips, the largest independent primary and special servicer in Europe, and LNR European Investment Fund, a European CRE debt fund; and
* Auction.com – 50 percent of LNR's interest in the nation's leading real estate exchange selling residential and commercial real estate via auction.
In addition, Starwood Capital Group will acquire for $197 million both LNR's US Commercial Property Group and the other 50 percent of LNR's ownership interest in Auction.com.
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