Blackstone Real Estate Debt Strategies (BREDS) is acquiring a portfolio of US commercial property loans from First Internet Bancorp for up to $869m (€743.7m).
BREDS is buying the performing single tenant lease financing loans for about 95% of their total value, with First Internet continuing to handle loan servicing for customers.
Tim Johnson, global head of Blackstone Real Estate Debt Strategies, said: “We’re pleased to acquire this portfolio of high-quality, performing commercial real estate loans.
“With a market-leading platform, deep expertise and $77bn of AUM, we are able to provide innovative solutions to financial institutions for their commercial real estate portfolios.”
David Becker, CEO and chairman of First Internet Bancorp, said: “This proposed transaction is a decisive step that advances key strategic priorities, including strengthening our capital position, accelerating operating performance towards our near-term target of 1% return on average assets, and significantly enhancing net interest margin.
“Reducing our exposure to fixed rate, lower-coupon loans is a meaningful component towards further optimising our earning asset base, providing balance sheet flexibility and a resilient earnings profile regardless of the interest rate environment.
“With stronger capital generation capabilities and balance sheet capacity, First Internet Bancorp will be well-positioned to capitalise on future growth opportunities.”
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