Latest news with #JohnAsbury
Yahoo
28-06-2025
- Business
- Yahoo
Blackstone Just Bought $2 Billion in Real Estate Loans--Here's Why It Matters Now
After completing its merger with Sandy Spring Bancorp in April, Atlantic Union Bankshares (NYSE:AUB) wasted no time reshaping its balance sheet. This week, the Richmond-based bank sold roughly $2 billion worth of performing commercial real estate loansoriginally acquired from Sandy Springto Blackstone (NYSE:BX), via its real estate debt platform BREDS. The loans had already been earmarked for sale as of April 1 and were ultimately priced in the low 90s to par. Atlantic Union will continue servicing the customers, while using the sale proceeds to pay down expensive funding sources and boost its securities portfolio. Warning! GuruFocus has detected 5 Warning Signs with BX. For Atlantic Union, this is all about simplification and risk management. CEO John Asbury called the transaction a clean execution that supports future growth and reduces CRE exposurekey for post-merger integration. Blackstone, meanwhile, sees another opportunity to expand its growing footprint in real estate credit. The $76 billion BREDS platform has now added $20 billion in CRE loan purchases over the past two years, including chunks of the failed Signature Bank portfolio and a $1 billion haul from Germany's PBB. Tim Johnson, head of Blackstone Real Estate Debt Strategies, said this deal highlights the firm's ability to craft bespoke solutions for banks offloading real estate risk. With rising rates and shifting valuations still pressuring CRE portfolios, private capital is stepping in aggressivelyand at discounted pricing. For Blackstone, that could mean solid upside. For regional banks like Atlantic Union, it's a way to stay liquid and lean while the dust settles. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
27-06-2025
- Business
- Yahoo
Atlantic Union sells $2B CRE portfolio to Blackstone unit
In a deal that closes the loop on its transformative acquisition of Sandy Spring Bank, Atlantic Union Bankshares said it sold $2 billion in performing commercial real estate loans to Blackstone Real Estate Debt Strategies. The $38 billion-asset Atlantic Union announced its intent to sell a CRE portfolio in October, when it struck its $1.3 billion deal for Sandy Spring. The subsequent loan sale, announced late Thursday, reduces Atlantic Union's CRE exposure while providing the means to pay down high-cost funding and add to the securities book. The episode "is another proof point of Atlantic Union's ability to execute and deliver on transactions that create long-term value for our shareholders," President and CEO John Asbury said in a press release. "[It] reduces our CRE concentration and frees up capacity for potential future growth." The Richmond, Virginia, bank will continue servicing the CRE loans it sold to Blackstone. Retaining servicing rights is crucial because it provides an opportunity to preserve the banking relationships with borrowers and, potentially, make new loans when the existing credits mature, Hovde analyst David Bishop wrote Friday in a research note. Atlantic Union had already marked the CRE portfolio to market, so there was no loss associated with the sale, even though the loans were sold at a discount, according to Bishop. Indeed, the deal might yield a small gain, he wrote. "We view this sale as a major first-step positive," Bishop wrote. An Atlantic Union spokesperson had not responded to a request for comment at deadline. Banks selling off commercial real estate loans has become a recurrent theme as financial institutions look to limit downside vulnerability to a sector marked by concerns about retail, multifamily and office vacancy rates. In December, the $62 billion-asset Valley National Bancorp in New York sold a $1 billion CRE portfolio to Brookfield Asset Management. The same month, HomeStreet in Seattle agreed to sell a $990 million CRE portfolio to Bank of America. HomeStreet, the holding company for HomeStreet Bank, later agreed to sell itself to the $16 billion-asset Mechanics Bank in Walnut Creek, California. Blackstone Real Estate Debt Advisors, which originates loans and invests in real estate-related debt for institutional and private investors, has completed several recent transactions involving bank CRE portfolios. In May 2024, Blackstone acquired $1 billion of loans originated by a German bank backed by multifamily, office and hospitality properties in the U.S. and the United Kingdom. Five months earlier, in December 2023, Blackstone acquired a 20% stake in a joint venture holding $17 billion of CRE loans originated by the failed Signature Bank. The Atlantic Union loan sale "demonstrates the breadth of our market-leading platform and deep expertise providing solutions to financial institutions for their commercial real estate portfolios," Tim Johnson, global head of Blackstone Real Estate Debt Strategies, said in a press release. Atlantic Union closed its acquisition of the Olney, Maryland-based Sandy Springs ahead of schedule in April. The deal established the company as the largest regional bank in Maryland and Virginia. With Sandy Spring under its belt, Asbury said the company plans to pivot south and seek growth opportunities in North and South Carolina. "We push south and make the investment in the Carolinas over time. That will be the next big thing," Asbury said in a recent interview with American Banker. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
26-06-2025
- Business
- Business Wire
Atlantic Union Bank Closes Sale of Approximately $2 Billion of Commercial Real Estate Loans to Blackstone
RICHMOND, Va. & NEW YORK--(BUSINESS WIRE)--Atlantic Union Bankshares Corporation (NYSE: AUB) ('Atlantic Union'), the holding company for Atlantic Union Bank (the 'Bank'), and Blackstone (NYSE: BX) jointly announced today the closing of the sale of approximately $2 billion of the Bank's performing commercial real estate ('CRE') loans acquired from Sandy Spring Bank to vehicles affiliated with Blackstone Real Estate Debt Strategies ('BREDS'). The CRE loan sale was contemplated and announced as part of Atlantic Union's merger with Sandy Spring Bancorp, Inc., which closed on April 1, 2025. 'After closing our acquisition of Sandy Spring, we have been focused on integration and execution,' said John Asbury, president and CEO of Atlantic Union. 'Today's announcement is another proof point of Atlantic Union's ability to execute and deliver on transactions that create long-term value for our shareholders. We were pleased to work with Blackstone Real Estate on this transaction, which both sides executed seamlessly. The loan sale transaction reduces our CRE concentration and frees up capacity for potential future growth.' Tim Johnson, Global Head of Blackstone Real Estate Debt Strategies, said: 'This transaction demonstrates the breadth of our market-leading platform and deep expertise providing solutions to financial institutions for their commercial real estate portfolios. With $76 billion of AUM, including the recent closing of one of the largest real estate debt funds ever, we believe we are well-positioned to access differentiated real estate credit investment opportunities on behalf of our institutional, insurance and individual investors.' The final CRE loan pool sold by the Bank had balances totaling approximately $2 billion which were previously identified and transferred to held for sale as of April 1, 2025. The loan pool was sold in the low 90s as a percentage of par value, and the Bank retained customer-facing servicing responsibilities. The Bank intends to use the proceeds from the loan sale to pay down certain high-cost deposits and certain other high-cost funds, as well as to add to its securities portfolio. For Blackstone Real Estate, this transaction follows the acquisition of $20 billion of CRE loan portfolios in the last 24 months, including the acquisition of an approximately 20% stake in the $17 billion Signature Bank CRE debt portfolio and the $1 billion performing senior mortgage loan portfolio acquisition from PBB. Morgan Stanley & Co. LLC served as sole structuring advisor to Atlantic Union and Hunton Andrews Kurth LLP acted as its legal advisor on the transaction. Citigroup Global Markets Inc. and CBRE National Loan & Portfolio Sale Advisors acted as financial advisors to Blackstone. Gibson, Dunn & Crutcher LLP, Ropes & Gray LLP and Benesch Friedlander Coplan & Aronoff LLP acted as legal advisors to Blackstone. About Atlantic Union Bankshares Corporation Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (NYSE: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has branches and ATMs located in Virginia, Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products. About Blackstone Real Estate Debt Strategies Blackstone Real Estate Debt Strategies ('BREDS') is the largest alternative asset manager of real estate credit with $76 billion of investor capital under management. Serving institutional, insurance, and individual investors, BREDS originates loans and makes debt investments across global private and public real estate credit markets and across the capital structure and risk spectrum. BREDS also manages Blackstone Mortgage Trust (NYSE: BXMT), a publicly-traded commercial mortgage REIT, and is a fully integrated part of the Blackstone Real Estate platform, the largest owner of commercial real estate globally. Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release may constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, and Rule 3b-6 promulgated thereunder, which statements involve inherent risks and uncertainties. Examples of forward-looking statements include, but are not limited to, statements regarding the loan sale, including Atlantic Union's intended use of proceeds from the sale and the expected benefits of the sale to Atlantic Union. Such statements are often characterized by the use of qualified words (and their derivatives) such as 'intend,' 'may,' 'will,' 'potential,' 'anticipate,' 'could,' 'should,' 'would,' 'believe,' 'contemplate,' 'expect,' 'estimate,' 'continue,' 'plan,' and 'project,' as well as words of similar meaning or other statements concerning opinions or judgment of us or our management about future events. Forward-looking statements are based on assumptions as of the time they are made and are subject to risks, uncertainties and other factors that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence, which could cause actual results to differ materially from anticipated results expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions, include, among others, the following: the possibility that the intended use of proceeds from the loan sale may change as a result of changes in economic conditions, market interest rates, volatility in the financial services sector, Atlantic Union's capital position, or as a result of other unexpected factors or events; Atlantic Union's ability to deploy the net proceeds in the manner it expects; and other factors, many of which are beyond Atlantic Union's control. Although Atlantic Union believes that its expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of its existing knowledge of its business and operations, there can be no assurance that our actual results will not differ materially from any projected future results expressed or implied by such forward-looking statements. Additional factors that could cause results to differ materially from those described above can be found in Atlantic Union's most recent annual report on Form 10-K and other documents subsequently filed by Atlantic Union with the Securities Exchange Commission. Investors are cautioned not to rely too heavily on any such forward-looking statements. Forward-looking statements speak only as of the date they are made and Atlantic Union undertakes no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Yahoo
06-02-2025
- Business
- Yahoo
Atlantic Union and Sandy Spring's $1.6bn merger deal secures approvals
Atlantic Union Bankshares and Sandy Spring Bancorp have secured shareholders' and regulatory approvals for the combination of their businesses. The transaction is anticipated to complete on 1 April 2025, contingent on the fulfilment or waiver of standard closing conditions. First announced in October 2024, the deal involves the acquisition of Maryland-based Sandy Spring by Virginia-based Atlantic Union for nearly $1.6bn. Each outstanding share of Sandy Spring common stock will be exchanged for the right to receive 0.900 shares of Atlantic Union common stock. Upon deal completion, Sandy Spring will merge with and into Atlantic Union. Atlantic Union president and CEO John Asbury said: 'We are pleased to have received all necessary bank regulatory approvals and each company's shareholder and stockholder approvals to proceed with the merger and remain on track to close the transaction on 1 April 2025. 'The merger will create a unique franchise by combining the #1 regional depository market share bank in Virginia with the #1 regional depository market share bank in Maryland.' Sandy Spring chair, president and CEO Daniel Schrider said: 'We are very excited to reach this important milestone as we work to bring together two great companies. 'It has been inspiring to see colleagues from both banks design, collaborate, and transform together to make this combination a success. 'This partnership will begin a new chapter, and we can't wait to see what we accomplish together.' The companies anticipate the merger to create the largest regional bank headquartered in the lower Mid-Atlantic, while also strengthening the combined company's foothold in Northern Virginia and Maryland. Three members of Sandy Spring's board of directors, including Dan Schrider, will secure seats on the Atlantic Union board post deal completion. Established in 1868, Sandy Spring had $14.4bn in assets, $11.7bn in total deposits, and $11.5bn in total loans as of 30 September 2024. "Atlantic Union and Sandy Spring's $1.6bn merger deal secures approvals" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Yahoo
06-02-2025
- Business
- Yahoo
Atlantic Union and Sandy Spring's $1.6bn merger deal secure approvals
Atlantic Union Bankshares and Sandy Spring Bancorp have secured shareholders' and regulatory approvals for the combination of their businesses. The transaction is anticipated to complete on 1 April 2025, contingent on the fulfilment or waiver of standard closing conditions. First announced in October 2024, the deal involves the acquisition of Maryland-based Sandy Spring by Virginia-based Atlantic Union for nearly $1.6bn. Each outstanding share of Sandy Spring common stock will be exchanged for the right to receive 0.900 shares of Atlantic Union common stock. Upon deal completion, Sandy Spring will merge with and into Atlantic Union. Atlantic Union president and CEO John Asbury said: 'We are pleased to have received all necessary bank regulatory approvals and each company's shareholder and stockholder approvals to proceed with the merger and remain on track to close the transaction on 1 April 2025. 'The merger will create a unique franchise by combining the #1 regional depository market share bank in Virginia with the #1 regional depository market share bank in Maryland.' Sandy Spring chair, president and CEO Daniel Schrider said: 'We are very excited to reach this important milestone as we work to bring together two great companies. 'It has been inspiring to see colleagues from both banks design, collaborate, and transform together to make this combination a success. 'This partnership will begin a new chapter, and we can't wait to see what we accomplish together.' The companies anticipate the merger to create the largest regional bank headquartered in the lower Mid-Atlantic, while also strengthening the combined company's foothold in Northern Virginia and Maryland. Three members of Sandy Spring's board of directors, including Dan Schrider, will secure seats on the Atlantic Union board post deal completion. Established in 1868, Sandy Spring had $14.4bn in assets, $11.7bn in total deposits, and $11.5bn in total loans as of 30 September 2024. "Atlantic Union and Sandy Spring's $1.6bn merger deal secure approvals" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
