Colony bets on US debt
Colony Capital, the US debt investor that backed Orion Capital Managers’ acquisition of Goldman Sachs’ debt in Spanish company Colonial, has won a Federal Deposit Insurance Corporation auction for $1bn of commercial property loans formerly held by failed US banks. The deal valued the loans at 44 cents on the dollar and was structured so that the FDIC will contribute $136m and hold 60% of the equity. Colony will put in $90m for the remaining 40%. Colony’s Tom Barrack told the Financial Times that the deal was “an implicit bet that rates stay low” and warned: “If rates go up, everyone will be crushed.”
Dwyer steps down from Fleming
John Dwyer has quit his role as head of property at the Fleming banking family private office. He ran the Fleming Family & Partners global fund of funds, which had invested in opportunistic vehicles including JER Partners Europe Fund III and MSREF Fund VI.
White Tower wrangle settled
CBRE Loan Servicing, the special servicer to the White Tower 2006-3 CMBS, won approval this month from class A and B note holders to amend the loan documentation. The vote resolves confusion about how available proceeds should be paid out. Capital will now be used to first pay the interest due on all outstanding notes, followed by principal on the most senior class of notes.
Gregory joins JCRA Financial
Richard Gregory has joined JCRA Financial as managing director. His main experience is in municipal bond markets and prior to joining JC Rathbone Associates he was head of debt capital markets for Bayerische Landesbank in New York.