Chicago bank holding company MB Financial Inc. said it is selling 631 performing, sub-performing and non-performing loans to a unit of Santa Monica real estate investment trust Colony Financial Inc.
The buyer of the MB Financial Bank loans is Colony Capital Acquisitions LLC, which in a statement said it was making the purchase on behalf of itself and investment funds managed by affiliates. Colony said on Friday the purchase price was more than $197 million, or about 51 percent of the portfolio’s unpaid principal balance.
The portfolio consists of roughly 50 percent performing and 50 percent non-performing first mortgage loans, primarily in the Midwest. Colony Financial’s pro-rata share of the deal is around $65 million, a 32.5 percent interest.
Colony Financial is managed and advised by a unit of Colony Capital LLC, the real estate investment firm founded by Los Angeles billionaire Thomas J. Barrack, Jr.,
The deal is expected to close by June 30.
Shares were up 7 cents, or less than 1 percent, to $18.20 in midday trading on the New York Stock Exchange.
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