|
|
2/09/16
|
Western Asset Management and iBorrow have inked a master loan purchase agreement in which iBorrow will offer CRE loans the company originates to Western Asset. Western is a leading global fixed income manager with approximately $434 bil of assets under management as of December 31, 2015.
iBorrow, which just changed its name from Eagle Group Finance in February 2016, was established in 2000 to originate small balance CRE loans at conservative loan to values. In 2015, they closed their first loan with Western Asset.
Brian Good, CEO of iBorrow, noted, “That joint experience led us to conclude that the basis of a more enduring relationship existed and could offer enormous mutual benefits. This relationship with Western Asset will enable us to significantly enhance our position as a leading originator in the fast growing asset-backed CRE marketplace for loans of any size.”
“The loans that iBorrow originates have significant asset coverage, are high in the capital structure and generate comparatively high yields. Given the fragility in the current market place, we see these loans as offering a very attractive risk / reward proposition,” said Anup Agarwal, Head of Structured Product at Western Asset and CIO of Western Asset Mortgage Capital Corp, a public mortgage REIT managed by Western Asset.
“When we started the business, our average loan size was $1 mil”, says Andrew Peltz, Co-Executive Chairman of iBorrow. “Today, average balance on our CRE loans is trending towards $6 mil and we expect the balance size to increase and quality of the collateral to improve. We believe traditional asset managers are getting comfortable investing in this asset class and look to put more and more capital to work”.
Given their access to capital and growing pipeline, iBorrow expects to more than double its loan origination volume in 2016 over 2015 levels.
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
