(Toronto) The Canada Pension Plan Investment Board (CPPIB) is part of a group that has acquired a 20% stake in a US$16.8 billion commercial mortgage portfolio from Signature Bank, which went bankrupt earlier this year.
The group, which includes Blackstone Real Estate Debt Strategies, Blackstone Real Estate Income Trust and Rialto Capital, agreed to acquire the stake for US$1.2 billion.
The U.S. Federal Deposit Insurance Corporation, which has held the portfolio since Signature Bank’s bankruptcy, will retain an 80% stake in the company.
The portfolio includes more than 2,600 first mortgages on a variety of properties located primarily in the New York metropolitan area.
Blackstone will be the lead asset manager of the portfolio and Rialto Capital will act as loan manager and operating partner.
New York-based Signature Bank was one of the largest U.S. banks to fail earlier this year.
