TPG has acquired the majority of a $2.5 billion portfolio of high-yield real estate loans from Deutsche Bank’s Special Situations Group, taking along with it a team of 11 origination and risk management professionals, reported PDI's sister title, Real Estate Capital.
The private equity firm, through a newly-formed REIT called TPG Real Estate Finance Trust (TRT), acquired a 75% stake in the existing portfolio, and has raised $750 million in capital from institutional investors for new loan originations. Deutsche Bank retains a 25% interest.
The existing portfolio is comprised of 57 performing first mortgage loans on transitional properties across property types in gateway US markets, primarily in New York and Los Angeles. They have a weighted average life of less than three years and a $40 million average loan size.
TPG has taken on 11 professionals from Deutsche Bank’s New York offices who are dedicated to the portfolio and specialize in high-yielding commercial real estate debt.
“We are very fortunate to have the same strong Deutsche Bank team in place, which will provide continuity for current borrowers and open the door to relationships with the growing number of new borrowers in need of financing,” Avi Banyasz, TPG partner and co-head of TPG Real Estate, said in a prepared statement.
Deutsche Bank and TPG declined to comment further. However, the LinkedIn professional profiles of at least two New York-based Deutsche Bank professionals, Michael Nagelberg and Lior Zamir, were updated this month to reflect new positions at TPG.
Nagelberg, a former Deutsche director is now director with TPG Real Estate Finance; while Zamir, a former vice president with Deutsche, carries that title over to TPG, according to the profiles.