Blackstone (NYSE: BX) is paying $2 billion for the performing commercial real estate (CRE) loans that Atlantic Union Bankshares Corporation (NYSE: AUB) acquired in its $1.6 billion purchase of Sandy Spring Bancorp Inc. in April.
According to the companies, the loan pool was sold in the low 90s as a percentage of par value, with the bank retaining customer-facing servicing responsibilities. Atlantic Union said it will use the proceeds from the loan sale to pay down certain high-cost deposits and certain other high-cost funds, as well as to add to its securities portfolio.
Blackstone has acquired $20 billion of CRE loan portfolios in the last 24 months, including the acquisition of an approximately 20% stake in the $17 billion Signature Bank CRE debt portfolio and the $1 billion performing senior mortgage loan portfolio acquisition from PBB.
According to Global Head of Blackstone Real Estate Debt Strategies Tim Johnson, “This transaction demonstrates the breadth of our market-leading platform and deep expertise providing solutions to financial institutions for their commercial real estate portfolios. With $76 billion of AUM, including the recent closing of one of the largest real estate debt funds ever, we believe we are well-positioned to access differentiated real estate credit investment opportunities on behalf of our institutional, insurance and individual investors.”
