Blackstone Mortgage Trust, Inc. today announced that it has signed a definitive agreement to acquire a $4.6 bln (€4.3 bln) commercial mortgage loan portfolio from GE Capital Real Estate. The acquisition is a part of the larger $23 bln (€21.7 mln) acquisition of the majority of GE Capital’s real estate business by investment vehicles managed by Blackstone and by Wells Fargo.
The portfolio to be acquired by BXMT consists of 82 first mortgage loans secured by a diverse set of commercial property types across its core and target markets, including the United States (68%), Canada (15%), the United Kingdom (10%), and Germany (7%) with an estimated weighted average loan-to-value ratio in line with BXMT’s existing portfolio.
Michael Nash, Executive Chairman, said, “This is a huge leap forward for BXMT, and highlights the unparalleled benefits of being part of the Blackstone Real Estate platform. This was a complex transaction we were uniquely equipped to evaluate, and to move with speed and certainty to signing. BXMT will be adding $4.6 billion of loans, which effectively doubles the size of our asset base. We expect our stockholders will realize significant value accretion from this greater scale.”