TPG Real Estate Finance Trust, Inc.

TPG Real Estate, the real estate platform of TPG, announced on January 9, 2015 the aquisition of a majority stake in a $2.5 billion portfolio of high-yield real estate loans from Deutsche Bank’s Special Situations Group. Under the terms of the agreement, TPG Real Estate acquired a 75 percent stake in the portfolio, with Deutsche Bank retained a 25 percent stake.

The portfolio is comprised of 57 performing first mortgage loans on properties in six gateway markets across the U.S., primarily in New York and Los Angeles. The loans, with a weighted average life of less than three years, an average loan size of approximately $40 million, and a targeted return of 12-14%, are backed by commercial real estate assets in transition that are not easily financed by traditional lenders. The property types include apartment, office, condominium, hotel and industrial assets.

As part of the transaction, a team of 11 professionals from Deutsche Bank’s Special Situations Group joined a newly-created mortgage REIT, TPG Real Estate Finance Trust (“TRT”), that owns the existing portfolio as well as originate new loans to existing and new borrowers. TRT raised capital from a group of institutional investors with total equity commitments in excess of $750 million that will allow for originations of new loans by the platform. TRT and Deutsche Bank’s leading Commercial Real Estate group continue to work together on new business opportunities.