[ad_1]
JER Traders Belief Inc., a mortgage REIT, filed for chapter within the newest signal of misery in industrial actual property.
The true property funding belief — which counts the personal fairness agency C-III Capital Companions amongst its high shareholders — owes greater than $100 million to collectors however has lower than $50 million of property, based on a Chapter 11 petition filed in Wilmington, Delaware, on Friday. Corporations use Chapter 11 of the U.S. Chapter Code to briefly halt most debt funds whereas they attempt to work out a plan to remain in enterprise.
JER Traders manages a portfolio of mortgage-backed securities and different forms of debt tied to the industrial actual property market, based on the corporate’s web site. As rates of interest climbed this yr, industrial properties got here underneath stress, particularly companies that misplaced tenants through the pandemic as office-tower staff stayed dwelling.
Earlier this month, mall proprietor Pennsylvania Actual Property Funding Belief filed for chapter for the second time in three years. In November, the coworking behemoth WeWork Inc.
C-III Capital owns no less than 8.4% of JER Traders, based on courtroom papers. JER additionally owes C-III almost $20 million, the chapter submitting reveals. The Financial institution of New York Mellon Belief is owed $93.9 million, based on the Chapter 11 petition.
The case is JER Traders Belief Inc., 23-12109, US Chapter Courtroom, District of Delaware (Wilmington)
[ad_2]
Source link