Starwood Bid for Corus Assets 20% More than Nearest Rival's
Bloomberg reports: Investors led by Starwood Capital Group and TPG won an auction for the real estate assets of failed Chicago lender Corus Bankshares by outbidding the nearest competitor by 20 percent, including about $100 million more of their own cash, people familiar with the matter said.
The cash provided by the Starwood-led group would be $554 million, compared with about $450 million for the next highest bid, said the people, who declined to be identified because the decision hasn't been announced. Including debt financing and an equity investment from the government, the bid values the assets at $2.77 billion, about half their face value, the people said.
Corus was seized by the Office of the Comptroller of the Currency and the FDIC was named receiver. As part of the transaction, MB Financial Bank, which has more than 80 branches in the Chicago area, agreed to pay $7 billion for Corus’s deposits and take over its 11 branches.
The bank, incorporated in 1958, held $3.9 billion in condominium loans as of March 31, including $997 million tied to properties in Miami and southeast Florida, according to filings.
"There is some great stuff in there and to get access to it at a bargain basement price level will be a boon for Starwood," said Dan Fasulo, managing director at New York-based research Real Capital Analytics Inc. "They’ll be able to pick and choose which asset they want to hold."
Ninety-eight banks have failed so far this year, depleting the FDIC's insurance fund. The regulator is seeking to lure non-bank investors including private-equity firms to bid on assets of collapsed banks.
View the full article on Bloomberg: Starwood Bid for Corus Assets 20% More than Nearest Rival's
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Posted by: Matthew Stone