On Thursday, the Federal Deposit Insurance Corp.-owned Signature Bridge Bank announced that it had sold 20% of its interest in the business, which was keeping a $16.8 billion real estate loan portfolio under the receivership of the bankrupt bank.
According to a second announcement from the investors, Blackstone Real Estate Income Trust, Canada Pension Plan Investment Board, and other investors paid $1.2 billion for a 20% equity position in the business.
Following the closure of New York-based Signature Bank by state authorities in March and the FDIC’s takeover, Signature Bridge Bank was established.
A marketing campaign for the almost $33 billion Commercial Real Estate (CRE) loan portfolio it maintained was launched, as the FDIC had stated in September.
The collapse of Silicon Valley Bank, which left billions of dollars’ worth of savings stranded, was followed two days later by the closure of Signature Bank, the third-largest financial failure in American history.
