Starwood Capital Group is investing up to $325m in a US property finance company owned by TPG Real Estate.
NYSE-listed TPG RE Finance Trust (TRTX) said the investment, which is being made by an affiliate of Starwood, will provide the company with “additional liquidity and flexibility to navigate the current economic environment”.
TRTX focuses primarily on originating, acquiring, and managing first mortgage loans and other commercial real estate‐related debt instruments secured by institutional properties located in primary and select secondary markets in the US. TRTX is externally managed by TPG RE Finance Trust Management.
Starwood will become a shareholder in TRTX and will be issued TRTX shares.
Ethan Bing, managing director of Starwood Capital, said: “With this recapitalisation and through our new position as a TRTX stakeholder, we firmly believe the company is positioned for sustained long-term success and will generate meaningful value for its shareholders and the partners of our fund moving forward.”
Greta Guggenheim, CEO of TPG RE Finance Trust, said: “Starwood’s investment is a testament to the strength and quality of TRTX’s business and portfolio.”
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