EverBank Financial Corp. said it plans to buy a real estate unit of GE Capital Real Estate, North America for $2.51 billion in cash, according to a statement released by the company.
The unit, Business Property Lending, originates and services commercial real estate loans for essential use properties owned or leased by small and midsize businesses nationwide.
The deal with GE Capital announced on Monday includes its real estate business in North America. The group writes and services commercial real estate loans for essential-use properties owned or leased by small and midsize businesses nationwide.
Robert Clements, Chairman of the Board and Chief Executive Officer of EverBank Financial, said, "...We believe this fully integrated, high quality franchise will accelerate EverBank's strategic growth plans and will further enhance and diversify our robust, nationwide asset generation capabilities. In addition, the financial benefits of the transaction are attractive, resulting in near term accretion to EPS and ROE. "
The transaction includes about $2.44 billion of performing commercial loans, the origination and servicing platforms, 108 employees and servicing rights on $3.1 billion of loans securitized by GE Capital.
Business Property Lending currently has 14 offices throughout the U.S., including two in Florida in Orlando and Jupiter.
GE called the agreement a "strong strategic win" and said the sale was part of its strategy to reduce the overall size of its real estate portfolio.
The transaction has been approved by both companies' board of directors and is expected to close in the fourth quarter of 2012, subject to regulatory approval and customary closing conditions.
EverBank Financial Corp. said it plans to buy a real estate unit of GE Capital Real Estate, North America for $2.51 billion in cash, according to a statement released by the company.
The unit, Business Property Lending, originates and services commercial real estate loans for essential use properties owned or leased by small and midsize businesses nationwide.
The deal with GE Capital announced on Monday includes its real estate business in North America. The group writes and services commercial real estate loans for essential-use properties owned or leased by small and midsize businesses nationwide.
Robert Clements, Chairman of the Board and Chief Executive Officer of EverBank Financial, said, "...We believe this fully integrated, high quality franchise will accelerate EverBank's strategic growth plans and will further enhance and diversify our robust, nationwide asset generation capabilities. In addition, the financial benefits of the transaction are attractive, resulting in near term accretion to EPS and ROE. "
The transaction includes about $2.44 billion of performing commercial loans, the origination and servicing platforms, 108 employees and servicing rights on $3.1 billion of loans securitized by GE Capital.
Business Property Lending currently has 14 offices throughout the U.S., including two in Florida in Orlando and Jupiter.
GE called the agreement a "strong strategic win" and said the sale was part of its strategy to reduce the overall size of its real estate portfolio.
The transaction has been approved by both companies' board of directors and is expected to close in the fourth quarter of 2012, subject to regulatory approval and customary closing conditions.
