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RMR Mortgage Trust and Tremont Mortgage Trust entered into a definitive agreement pursuant in which TRMT will merge with RMRM, with RMRM continuing as the surviving company, according to a press release.
The merger was made in order to create a more diversified commercial mortgage real estate investment trust. The focus of the new REIT will be middle-market transitional bridge loans and assets expected to approach $1 billion when full invested, according to the release.
"This combination greatly enhances our financial strength and provides attractive benefits to the shareholders of both companies," said Tom Lorenzini, president of RMRM and TRMT. "We believe that with increased scale and an expanded capital base the combined company will be much better positioned to access capital markets, increase operating efficiency, and deliver more attractive risk-adjusted returns for our shareholders."
The release states that on a pro format basis, the combined company will have a loan portfolio consisting of 22 first mortgage loans with aggregate loan commitments of $519 million, average funded loan size of $21 million, weighted average maximum maturity and weighted interest rate of LIBOR plus 3.91% and a weighted average loan-to-value of 66%.
The merger is expected to close during the third quarter of 2021, subject to the requisite approvals by RMRM and TRMT shareholders and other customary closing conditions.
Click here to read more about the merger.