Starz Real Estate forms new €300M JV with Ready Capital

Rhea-AI Summary

Ready Capital Corporation (NYSE: RC) has formed a joint venture with Starz Real Estate, targeting to originate approximately €300 million in new commercial real estate loans over the next two years. The venture aims to provide loans between €10 million and €40 million across Europe, focusing on sectors such as office, residential, and logistics. This collaboration reflects increasing confidence in Starz, backed by a Middle East Sovereign Wealth Fund. Ready Capital's CEO emphasizes a commitment to expand its international commercial real estate lending business through this partnership.

Positive

• Joint venture aims to originate €300 million in commercial real estate loans.
• Focus on diverse sectors including office, residential, and logistics.
• Expansion into European markets demonstrates growth strategy.

Negative

• None.

LONDON and NEW YORK, July 13, 2022 /PRNewswire/ -- Ready Capital Corporation (NYSE: RC) ("Ready Capital" or the "Company") today announced Starz Real Estate (Starz), a pan-European commercial real estate lending platform has formed a new joint venture with Ready Capital Corporation (NYSE: RC), a commercial mortgage REIT headquartered in New York, to originate circa €300m of new commercial real estate loans over the next two years.

The new joint venture will focus on deploying commercial real estate bridge and term loans between €10m and €40m in size across the UK, Benelux, Dach Region, Italy and Portugal with up to 75% LTV across sectors including office, residential, mixed use, student housing, logistics, self-storage, and selective retail and hotel opportunities.  The joint venture can also offer construction lending in the above mentioned continental European locations.

The deal reflects further institutional confidence in Starz, following backing from a Middle East Sovereign Wealth Fund at the end of last year to originate €900m of loans with the latest transaction in that fund comprising a €68.5m senior facility to Union Street Investments for a multi-office investment platform in the Netherlands.

David Arzi, CEO of Starz, said: "This partnership with Ready Capital will significantly expand our capability to service the increasing demand for agile, mid-market capital across the UK and Europe, bolstering our existing lending strategy."

"We are working in a challenging yet exciting landscape in the wake of the pandemic, with new opportunities as assets change hands or need repurposing to suit new demands.  We are pleased to have an institutional investor of this calibre backing us, with our streamlined underwriting processes ensuring we can take capital to market in an efficient and decisive manner."

"This new JV partnership with Starz follows through on our commitment to expand Ready Capital's commercial real estate lending business internationally," said Thomas Capasse, CEO of Ready Capital. "With a history of sourcing high quality loans from strong sponsors, the team at Starz has an investment philosophy that aligns well with the credit foundation of Ready Capital's lending strategies, plus they share our hands-on approach to loan servicing and asset management." Ready Capital is externally managed by Waterfall Asset Management, LLC. 

About Starz
Launched in July 2018, Starz is a commercial real estate lender focused on middle-market loans throughout Europe. With a balance sheet built for the long haul, Starz is a flexible and reliable source of capital for real estate investors. Starz provides collaborative lending solutions coupled with streamlined underwriting processes that ensures seamless service. https://starzrealestate.com/

About Ready Capital
Ready Capital Corporation (NYSE: RC) is a multi-strategy real estate finance company that originates, acquires, finances and services small to medium balance commercial loans. Ready Capital specializes in loans backed by commercial real estate, including multifamily agency, stabilized and bridge financing, as well as government guaranteed business loans. Ready Capital and its affiliates also provide alternative lending, construction lending, and low-income housing finance as well as residential mortgages. Headquartered in New York, Ready Capital employs more than 600 lending professionals nationwide. The company is externally managed by Waterfall Asset Management, LLC. www.readycapital.com

Contact
Investor Relations, Ready Capital Corporation
212-257-4666
InvestorRelations@readycapital.com 
Ready Capital Media Relations
PR@readycapital.com 

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SOURCE Ready Capital Corporation

FAQ

What is the new joint venture between Ready Capital and Starz Real Estate?

The joint venture aims to originate approximately €300 million in commercial real estate loans over the next two years.

What types of loans will the Ready Capital and Starz joint venture provide?

The joint venture will provide commercial real estate bridge and term loans between €10 million and €40 million.

Which regions will the Ready Capital and Starz joint venture target?

The venture will focus on the UK, Benelux, Dach Region, Italy, and Portugal.

When was the joint venture between Ready Capital and Starz announced?

The joint venture was announced on July 13, 2022.

What are the expected benefits of the Ready Capital and Starz joint venture?

The joint venture is expected to expand lending capabilities to meet increasing demand for mid-market capital in Europe.