Business & Finance
Business and Finance
Business and Finance
Mon, March 21, 2011 CreXus Investment Corp. to Acquire Commercial Real Estate Mortgage Loan Portfolio
NEW YORK--([ BUSINESS WIRE ])--CreXus Investment Corp. (NYSE:CXS) announced today that it has signed a definitive asset purchase agreement with Barclays Capital Real Estate Inc., an affiliate of Barclays Bank PLC, to acquire a portfolio of commercial real estate assets. The aggregate purchase price of the portfolio is approximately $586 million. The closing of the transaction is contingent upon the completion of certain conditions precedent, including the successful completion of a common stock offering by CreXus, and obtaining certain consents. The acquisition is targeted to close during mid-April 2011.
The portfolio consists of 30 commercial real estate assets, including commercial mortgage loans, subordinate notes and mezzanine loans. The property types underlying these assets include hotels, offices, condominium, multi-family and retail properties.
Kevin Riordan, Chief Executive Officer and President of CreXus, commented on the transaction. aWe are pleased to be able to take advantage of this unique acquisition opportunity, which we believe is consistent with our investment objective of providing attractive risk-adjusted returns to our shareholders. We believe the acquisition will not only strengthen our portfolio through the diversification, breadth and quality of the assets, it also demonstrates that CreXus is well-positioned to take advantage of opportunities in the current market environment in commercial real estate finance.a
CreXus acquires, manages and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate-related debt, commercial mortgage-backed securities, other commercial real estate-related assets and, to the extent necessary for regulatory purposes, residential mortgage-backed securities. Our principal business objective is to provide attractive risk-adjusted returns to our investors over the long-term, primarily through dividends and secondarily through capital appreciation. The investment manager of CreXus is Fixed Income Discount Advisory Company (FIDAC), a wholly-owned subsidiary of Annaly Capital Management, Inc. We are a Maryland corporation that has elected to be taxed as a real estate investment trust (aREITa).
This news release and our public documents to which we refer contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements which are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as abelieve,a aexpect,a aanticipate,a aestimate,a aplan,a acontinue,a aintend,a ashould,a amay,a awould,a awilla or similar expressions, or variations on those terms or the negative of those terms. Actual results could differ materially from those set forth in forward-looking statements due to a variety of factors, including, but not limited to, our business and strategy; our projected financial and operating results; our ability to obtain and maintain financing arrangements and the terms of those arrangements; financing and advance rates for our targeted assets; general volatility of the markets in which we acquire assets; the implementation, timing and impact of, and changes to, various government programs; our expected assets; changes in the value of our assets; market trends in our industry, interest rates, the debt securities markets or the general economy; rates of default or decreased recovery rates on our assets; our continuing or future relationships with third parties; prepayments of the mortgage and other loans underlying our mortgage-backed or other asset-backed securities; the degree to which our hedging strategies may or may not protect us from interest rate volatility; changes in governmental regulations, tax laws, accounting guidance, and rates and similar matters; our ability to maintain our qualification as a REIT for U.S. federal income tax purposes; our ability to maintain our exemption from registration under the Investment Company Act of 1940, as amended; the availability of opportunities in real estate-related and other securities; the availability of qualified personnel; estimates relating to our ability to make distributions to our stockholders in the future; our understanding of our competition; interest rate mismatches between our assets and our borrowings used to finance purchases of such assets; changes in interest rates and mortgage prepayment rates; the effects of interest rate caps on our adjustable-rate mortgage-backed securities; our and the sellera™s ability to close the planned acquisition, including satisfying all closing conditions; the composition of our assets following the closing of the planned acquisition, including our ability to close the acquisition with the assets and in the manner contemplated; our ability to integrate the newly acquired assets into our existing portfolio; and our ability to realize our expectations of the advantages of acquiring the assets in the planned acquisition. For a discussion of the risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements, see aRisk Factorsa in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q. We do not undertake, and specifically disclaim all obligations, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
