A private-equity consortium led by Starwood Capital Group has picked up 40% of the Corus Bank portfolio in a transaction with the Federal Deposit Insurance Corporation (FDIC) according to a Wall Street Journal article. The FDIC seized roughly $4.5 billion in troubled real estate loans from Corus Bancshares just a few weeks ago, making Corus the 90th bank to be seized this year. The purchasing group, which includes Starwood, TPG Capital, Perry Capital and WLR LeFrak, will spend $554.4 million for a 40% managing stake in a company set up by the FDIC to hold $4.5 billion in mostly condominium loans, while the regulator will keep a 60% hold.
“We got a good price on it,” FDIC Chairman Sheila Bair said in an interview in New York. “I think we will use this structure again, absolutely. We’re pleased with the results.” Eight bidders had vied to purchase a stake in the limited liability company set up to hold the assets, which include performing and non-performing construction loans and real estate-owned assets with an unpaid principal balance of roughly $4.5 billion, the FDIC said. Chicago-based MB Financial has already agreed to buy $7 billion worth of Corus’s deposits, re-opening Corus Bank branches under the MB brand.
Keywords: asset, auction, bank, Corus Bank, FDIC, loans, MB Financial, Perry Capital, Sheila Bair, Starwood Capital, TPG Capital, WLR LeFrak
