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JER Buyers 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 non-public fairness agency C-III Capital Companions amongst its prime shareholders — owes greater than $100 million to collectors however has lower than $50 million of belongings, in keeping with 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 Buyers manages a portfolio of mortgage-backed securities and different kinds of debt tied to the industrial actual property market, in keeping with the corporate’s web site. As rates of interest climbed this 12 months, industrial properties got here beneath strain, particularly corporations that misplaced tenants throughout the pandemic as office-tower employees 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 at the very least 8.4% of JER Buyers, in keeping with courtroom papers. JER additionally owes C-III almost $20 million, the chapter submitting exhibits. The Financial institution of New York Mellon Belief is owed $93.9 million, in keeping with the Chapter 11 petition.
The case is JER Buyers Belief Inc., 23-12109, US Chapter Court docket, District of Delaware (Wilmington)
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