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Related Takes Stake in Ladder Capital

NEW YORK CITY—The REIT's reported depreciated book value is “a conservative representation” of its actual value, says Related Cos. CEO Jeff Blau.

By Paul Bubny | paulbubny | Updated on February 28, 2017

Photo of Jeff Blau Blau notes that Ladder’s core earnings “have been positive each quarter since their inception” in 2008.

NEW YORK CITY—Related Cos. has taken a stake in finance REIT Ladder Capital Corp., acquiring $80 million of Ladder stock from certain pre-IPO shareholders, the two companies said Tuesday. In connection with Related’s strategic investment, Ladder has granted Related a right of first offer with respect to certain horizontal risk retention investments in which Ladder intends to retain an interest.

The investment by Related Real Estate Fund II, an opportunity fund with equity commitments of over $1 billion, also gives Related a seat on Ladder’s board. Related EVP Richard O’Toole will join the Ladder board, replacing Jonathan Bilzin, managing director of TowerBrook Capital Partners, one of the pre-IPO shareholders from whom the Related fund bought the REIT’s stock. “TowerBrook continues to remain a large shareholder in the company and we look forward to watching the team and the company enjoy continued success,” Bilzin says.

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