FDIC-run Signature Bridge Bank sells 20% stake of $16.8 billion real estate portfolio

investing.com:

(Reuters) — The Federal Deposit Insurance Corp-run Signature Bridge Bank said on Thursday it has sold 20% of its equity stake in the venture that holds a $16.8 billion real estate loan portfolio, which it had retained in receivership of the failed bank.

Hancock JV Bidco, which is indirectly controlled by Blackstone (NYSE:BX) and other investors, paid $1.2 billion for a 20% equity interest in SIG CRE 2023 Venture, wholly owned by the Signature Bridge Bank.

Signature Bridge Bank was created after state regulators closed New York-based Signature Bank (OTC:SBNY) in March and the FDIC took control.

In September, the FDIC had announced the start of a marketing process for the nearly $33 billion Commercial Real Estate (CRE) loan portfolio it retained.

Signature Bank's demise was the third-largest failure in U.S. banking history and came two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.