The aggregate purchase consists of 30 commercial real estate assets, including commercial mortgage loans, subordinate notes and mezzanine loans. The property types underlying these assets include hotels, offices, condominium, multi-family and retail properties.
CreXus CEO and president Kevin Riordan said that this unique acquisition opportunity is consistent with the investment objective of providing attractive risk-adjusted returns to shareholders.
"We believe the acquisition will not only strengthen our portfolio through the diversification, breadth and quality of the assets, it also demonstrates that CreXus is well-positioned to take advantage of opportunities in the current market environment in commercial real estate finance," Riordan said.
The closing of the transaction is contingent upon the completion of certain conditions precedent, including the successful completion of a common stock offering by CreXus, and obtaining certain consents.
The acquisition is expected to close during mid-April 2011.
CreXus acquires, manages and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate-related debt, commercial mortgage-backed securities, other commercial real estate-related assets and, to the extent necessary for regulatory purposes, residential mortgage-backed securities.
The investment manager of CreXus is Fixed Income Discount Advisory Company (FIDAC) is a wholly-owned subsidiary of Annaly Capital Management.
