Valley National Bank Closes on the Sale of Nearly $1 Billion of Commercial Real Estate Loans to Brookfield Asset Management
Valley National Bancorp (NASDAQ: VLY) announced the sale of a diverse pool of performing commercial real estate mortgage loans to Brookfield Asset Management (NYSE: BAM, TSX: BAM). The final loan pool sold had contractual balances totaling approximately $925 million, with around $823 million previously identified for sale as of September 30, 2024.
The loan pool was sold at a discount of about one percent to par value, and Valley will retain servicing responsibilities. CEO Ira Robbins stated that the sale aligns with Valley's strategic balance sheet goals, noting the transaction's modest discount reflects the strength of their portfolio.
Brookfield's Managing Partner, Bill Powell, highlighted the strategic nature of the acquisition for both parties. Valley expects to recognize an immaterial net loss in Q4 2024 due to the discount and transaction-related expenses. Morgan Stanley & Co. served as the sole advisor for the transaction.
Valley National Bancorp (NASDAQ: VLY) ha annunciato la vendita di un insieme diversificato di prestiti ipotecari commerciali performanti a Brookfield Asset Management (NYSE: BAM, TSX: BAM). Il portafoglio finale di prestiti venduto aveva saldi contrattuali totali di circa 925 milioni di dollari, con circa 823 milioni di dollari precedentemente identificati per la vendita al 30 settembre 2024.
Il portafoglio di prestiti è stato venduto con uno sconto di circa l'uno percento rispetto al valore nominale, e Valley manterrà le responsabilità di gestione. Il CEO Ira Robbins ha dichiarato che la vendita si allinea con gli obiettivi strategici di bilancio di Valley, sottolineando che il modesto sconto della transazione riflette la solidità del loro portafoglio.
Bill Powell, Managing Partner di Brookfield, ha messo in evidenza il carattere strategico dell'acquisizione per entrambe le parti. Valley prevede di riconoscere una perdita netta irrilevante nel quarto trimestre del 2024 a causa dello sconto e delle spese correlate alla transazione. Morgan Stanley & Co. ha svolto il ruolo di consulente esclusivo per la transazione.
Valley National Bancorp (NASDAQ: VLY) anunció la venta de un conjunto diversificado de préstamos hipotecarios comerciales que están funcionando a Brookfield Asset Management (NYSE: BAM, TSX: BAM). El conjunto final vendido tenía saldos contractuales totales de aproximadamente 925 millones de dólares, con alrededor de 823 millones de dólares previamente identificados para la venta a partir del 30 de septiembre de 2024.
El conjunto de préstamos se vendió con un descuento de aproximadamente el uno por ciento respecto al valor nominal, y Valley retendrá las responsabilidades de servicio. El CEO Ira Robbins declaró que la venta se alinea con los objetivos estratégicos del balance de Valley, señalando que el modesto descuento de la transacción refleja la solidez de su portafolio.
Bill Powell, Socio Director de Brookfield, destacó la naturaleza estratégica de la adquisición para ambas partes. Valley espera reconocer una pérdida neta irrisoria en el cuarto trimestre de 2024 debido al descuento y a los gastos relacionados con la transacción. Morgan Stanley & Co. sirvió como asesor exclusivo para la transacción.
밸리 내셔널 뱅코프 (NASDAQ: VLY)는 브룩필드 자산 관리 (NYSE: BAM, TSX: BAM)에게 다양한 상업용 부동산 담보 대출 풀을 판매한다고 발표했습니다. 최종 판매된 대출 풀의 계약 잔액은 약 9억 2500만 달러였으며, 2024년 9월 30일 기준으로 약 8억 2300만 달러가 판매를 위해 사전 확인되었습니다.
대출 풀은 액면 가치에 비해 약 1%의 할인으로 판매되었으며, 밸리는 서비스 책임을 유지할 것입니다. CEO 이라 로빈스는 이번 판매가 밸리의 전략적 자산 목표와 일치한다고 언급하며, 거래의 적은 할인이 포트폴리오의 강점을 반영한다고 강조했습니다.
브룩필드의 매니징 파트너인 빌 파월은 두 당사자 간의 인수의 전략적 성격을 강조했습니다. 밸리는 할인과 거래 관련 비용으로 인해 2024년 4분기 동안 미미한 순손실을 인식할 것으로 예상합니다. 모건 스탠리가 거래에 대한 단독 자문 역할을 수행했습니다.
Valley National Bancorp (NASDAQ: VLY) a annoncé la vente d'un portefeuille diversifié de prêts hypothécaires commerciaux performants à Brookfield Asset Management (NYSE: BAM, TSX: BAM). Le portefeuille de prêts vendu avait des soldes contractuels totalisant environ 925 millions de dollars, avec environ 823 millions de dollars précédemment identifiés pour vente au 30 septembre 2024.
Le portefeuille de prêts a été vendu avec une remise d'environ un pour cent par rapport à la valeur nominale, et Valley conservera les responsabilités de service. Le PDG Ira Robbins a déclaré que la vente s'aligne avec les objectifs stratégiques de bilan de Valley, notant que la remise modeste de la transaction reflète la force de leur portefeuille.
Bill Powell, partenaire directeur de Brookfield, a souligné le caractère stratégique de l'acquisition pour les deux parties. Valley s'attend à reconnaître une perte nette négligeable au quatrième trimestre 2024 en raison de la remise et des dépenses liées à la transaction. Morgan Stanley & Co. a été le conseiller exclusif pour la transaction.
Valley National Bancorp (NASDAQ: VLY) hat den Verkauf eines vielfältigen Portfolios von leistungsfähigen gewerblichen Immobilienhypothekendarlehen an Brookfield Asset Management (NYSE: BAM, TSX: BAM) bekannt gegeben. Das zuletzt verkaufte Darlehensportfolio hatte vertragliche Salden von insgesamt etwa 925 Millionen US-Dollar, von denen rund 823 Millionen US-Dollar bereits zum 30. September 2024 zur Verfügung stehen.
Das Darlehensportfolio wurde mit einem Rabatt von etwa einem Prozent gegenüber dem Nennwert verkauft, und Valley wird die Servicerolle übernehmen. CEO Ira Robbins erklärte, dass der Verkauf mit den strategischen Bilanzzielen von Valley übereinstimmt und dass der moderate Rabatt der Transaktion die Stärke ihres Portfolios widerspiegelt.
Bill Powell, geschäftsführender Partner von Brookfield, hob die strategische Bedeutung der Akquisition für beide Parteien hervor. Valley erwartet, im vierten Quartal 2024 aufgrund des Rabatts und der transaktionsbezogenen Kosten einen unerheblichen Nettoverlust zu erkennen. Morgan Stanley & Co. diente als alleiniger Berater für die Transaktion.
- Sale of commercial real estate loans totaling approximately $925 million.
- Transaction aligns with strategic balance sheet goals.
- Modest discount of about one percent to par value reflects portfolio strength.
- Partnership with Brookfield Asset Management, a leading global asset manager.
- Expected immaterial net loss in Q4 2024 due to transaction discount and related expenses.
Insights
This significant
The deal's timing and execution demonstrate prudent risk management amid commercial real estate market uncertainties. While the immediate financial impact shows a small loss, the long-term benefits include improved capital flexibility, reduced CRE concentration and potential for an ongoing partnership with Brookfield. This transaction positions Valley favorably for regulatory scrutiny of CRE exposures and creates capacity for strategic growth initiatives.
This transaction signals broader market dynamics in the banking sector, where institutions are strategically managing their CRE exposure. The ability to execute at near-par value, particularly when many banks are struggling with CRE portfolios, demonstrates Valley's portfolio quality and market positioning. The partnership with Brookfield, a major player in alternative investments, opens doors for future transactions and validates Valley's underwriting standards.
The deal's structure represents an evolving model in banking where institutions can maintain client relationships while sharing risk with alternative capital providers. This hybrid approach could become more prevalent as banks navigate regulatory pressures and market uncertainties in commercial real estate.
NEW YORK, Dec. 03, 2024 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ: VLY) (“Valley”), the holding company for Valley National Bank (the “Bank”), announced that the Bank closed on the sale of a diverse pool of performing commercial real estate mortgage loans to Brookfield Asset Management (NYSE: BAM, TSX: BAM) (“Brookfield”), a global alternative investment manager. The final loan pool sold had contractual balances totaling approximately
Ira Robbins, Chairman and Chief Executive Officer of Valley, commented, “The sale of this performing commercial real estate loan pool has helped to accelerate progress towards our strategic balance sheet goals. Throughout the year we have patiently monitored loan sale opportunities in the context of our deep understanding of the intrinsic value of our assets, and the unique dynamics of the markets that we serve. This deliberate approach resulted in only a modest transaction discount to par, exclusive of other selling costs, which further reflects the strength and desirability of our diverse commercial real estate portfolio. Brookfield is one of the leading asset managers in the global markets, and we are excited to have partnered together on this mutually beneficial transaction.”
Bill Powell, Brookfield Managing Partner, Credit, said, “Brookfield’s acquisition of Valley’s portfolio of high quality, performing loans is strategic for both parties and demonstrates our ability to step in as an alternative lender to provide creative, flexible capital solutions. We’re thrilled to partner with Valley on the first part of what we expect will be a long-term partnership.”
In the fourth quarter 2024, Valley expects to recognize an incremental immaterial net loss related to the approximate one percent discount on loans that had not been previously moved to held for sale as of September 30, 2024, and traditional transaction-related expenses. Morgan Stanley & Co. LLC served as sole advisor to the Bank on the transaction.
About Valley
As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with over
About Brookfield Asset Management
Brookfield Asset Management Ltd. (NYSE: BAM, TSX: BAM) is a leading global alternative asset manager with approximately
Forward Looking Statements
The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about Valley’s business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Valley’s actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to those risk factors disclosed in Valley’s Annual Report on Form 10-K for the year ended December 31, 2023.
Media Contact:
Rachel Wood
Rachel.wood@brookfield.com
| Contact: | Travis Lan Executive Vice President and Deputy Chief Financial Officer (973) 686-5007 |
FAQ
What recent transaction did Valley National Bancorp (VLY) complete?
How much was the commercial real estate loan pool sold by Valley National Bancorp valued at?
What was the discount rate applied to the sale of Valley National Bancorp's loan pool?
When did Valley National Bancorp identify the loans for sale?
Who served as the advisor for Valley National Bancorp in this transaction?
