Värde Partners Closes Third and Largest CRE CLOOctober 7, 2019
MINNEAPOLIS – Värde Partners, today announced the closing of a commercial real estate collateralized loan obligation (CRE CLO). This is the firm’s third and largest CRE CLO, and seventh securitization of commercial real estate collateral.
The asset pool consists of 24 floating-rate mortgages secured by 47 properties and has an aggregate unpaid principal balance of $627.5 million. Värde offered $514.6 million of bonds rated AAA through BBB-. The assets include office, multifamily, retail, hospitality, and mixed use properties across 12 states with an average principal balance of approximately $26.1 million.
Brian Schmidt, Partner and Head of Värde’s Mortgage Business, said: “This third commercial real estate CLO demonstrates the continued growth and strength of our mortgage origination platform. The deal will support the ongoing expansion of our mortgage business and deepen our long term financing relationships with investors. We have a long track record of investing in US mortgages, investing flexible capital across a range of geographies, asset classes and capital structures.”
Värde has originated or acquired more than $2.5 billion in commercial real estate loans since 2014, with its origination activity primarily focused on floating rate mortgage loans on light transitional, value-add and event-driven commercial and multifamily opportunities across the U.S. Värde closed its first CRE CLO in February 2018 with an aggregate principal balance of
$368.1 million backed by 25 mortgages and 28 assets and its second CRE CLO in November 2018 with an aggregate principal balance of $457.8 million backed by 25 mortgages and 27
About Värde Partners:
Värde Partners is a $14 billion global alternative investment firm that employs a value-based approach to investing across a broad array of geographies, segments and asset types, including
mortgages, corporate credit, real estate, specialty finance, energy, real assets and infrastructure. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs more than 300 people globally with regional headquarters in Minneapolis, London and Singapore.