CBRE Realty Finance Aims to Raise Up to $200 Million in Initial Public Offering

Strategic Insights -

CBRE Realty Finance is preparing to launch its initial public offering, seeking to raise up to $200 million with the help of Credit Suisse and Deutsche Bank as underwriters. This move follows a June private offering that raised $300 million, which has since been utilized for $538 million of investments. The company has secured financing for its investments through a warehouse facility provided by Deutsche Bank and repurchase agreements from Bank of America. Notably, CBRE Realty has completed its first collateralized debt obligation (CDO), a $600 million offering led by Deutsche Bank, which features a unique 100% allowance for whole loans.

Key Takeaways:

  • CBRE Realty Finance is planning an initial public offering, seeking to raise up to $200 million, with Credit Suisse and Deutsche Bank as underwriters.
  • The company has already raised $300 million in a private offering, which has been used for $538 million of investments.
  • CBRE Realty secures financing for its investments through a warehouse facility from Deutsche Bank and repurchase agreements from Bank of America.
  • The company has completed a $600 million CDO, its first, which features a 100% allowance for whole loans, unlike other recent CRE CDOs.
  • The CDO is backed mainly by whole loans, B notes, mezzanine loans, and commercial mortgage-backed securities, with a portfolio consisting of $217.5 million of whole loans and bridge loans, $94.6 million of B notes, $136.2 million of mezzanine loans, $81.5 million of CMBS, and $8.3 million of investments in joint ventures.
  • The company will qualify as a REIT and will use proceeds from the offering to repay outstanding debt and fund future investment activity.

Statistics:

  • CBRE Realty Finance plans to raise up to $200 million in its initial public offering.
  • The company has already invested $538 million of funds raised from a June private offering.
  • The CDO portfolio consists of:

+ $217.5 million in whole loans and bridge loans

+ $94.6 million in B notes

+ $136.2 million in mezzanine loans

+ $81.5 million in CMBS

+ $8.3 million in investments in joint ventures

  • The company has completed a $600 million CDO, its first CDO, led by Deutsche Bank.

Sources:

  • "CBRE Realty Finance Aims to Raise Up to $200 Million in Initial Public Offering," CNBC (exact phrase, date omitted)
  • CBRE Realty Finance filing with the Securities and Exchange Commission (SEC)