Redwood Trust Expands Commercial Lending Pipeline With Strategic Investment
MILL VALLEY, Calif., April 22, 2021 / PRNewswire / – Redwood Trust, Inc. (NYSE: RWT), a leader in expanding access to housing for buyers and renters, today announced a minority investment in preferred shares in Churchill Finance (“Churchill”), a company vertically integrated real estate financing company based in New York, NY. In business since 2014, Churchill focuses on the creation, aggregation and asset management of mortgage products backed by residential, multi-family and commercial properties.
This investment will help develop and diversify the asset supply channels of CoreVest, a Redwood Trust company and the market’s leading lender to residential real estate investors. The investment will also provide growth capital to Churchill as well as access to additional expertise in financial markets. The proceeds of the investment will be used for a combination of capital to invest in Churchill’s strategic growth initiatives and for deployment in financial assets created by Churchill in its investment verticals.
- Creates a partnership with a major player in the market with significant strategic synergies with the existing activity of CoreVest
- Provides a direct investment opportunity that will drive growth in a mature and diverse operating platform
- Diversifies access to a growing portfolio of rental loans for bridges and single-family homes
- Expands loan distribution opportunities for products originating from CoreVest
- Improves access to institutional capital for sophisticated real estate investors
“A strategic partnership with Churchill accelerates our strategy to further expand our presence in the $ 90 billion market for commercial loans. Churchill has developed a unique business model with attractive adjacencies to our core business, ”said Beth o’brien, CEO of CoreVest. “Diversifying our supply channels gives us additional scale and broadens the way we meet the growing needs of sophisticated real estate investors. I am delighted to be working closely with the Churchill leadership team, including joining the Churchill Board of Directors, to help drive our aligned strategies by delivering the best. industry-leading financing solutions for the market. “
“Over the past six years, we have established Churchill as a leading player in the mortgage market. We are delighted to have a strategic investor with the reputation and expertise of Redwood and its management team. We look forward to leveraging the strategic synergies of our business to continue to grow in the markets we serve, ”said Sorabh Maheshwari, a founding partner of Churchill. “We are delighted to welcome Beth to our board. Her expertise in capital markets and business creation and development will provide us with valuable insight into the implementation of our strategic initiatives.”
Piper sandler & Co. has been the exclusive financial advisor to Churchill Finance.
About Redwood Trust
Redwood Trust, Inc. (NYSE: RWT) is a specialty finance company focused on several distinct areas of home finance. Our operating platforms occupy a unique position in the housing finance value chain, providing liquidity to growing segments of the US housing market not served by government programs. We offer personalized mortgage investments to a diverse range of investors, through our best securitization platforms; global loan distribution activities; and our publicly traded stocks. Our consolidated investment portfolio has evolved to incorporate a diversified mix of residential, commercial and multi-family investments. Our aim is to provide attractive returns to shareholders through a stable and growing stream of earnings and dividends, capital appreciation and a commitment to technological innovation that facilitates a risk-driven scale. Since our IPO in 1994, we have managed our business through multiple cycles, building a track record of innovation, a reputation for best-in-class service and a sensible approach to investing in credit. Redwood Trust is managed and structured internally as a real estate investment trust (“REIT”) for tax purposes. For more information on Redwood Trust, visit our website at www.redwoodtrust.com or connect with us on LinkedIn, Twitter, or Facebook.
CoreVest is the leading lender to residential real estate investors nationwide. We offer long-term loans for stabilized rental properties as well as short-term bridging loans, investment lines of credit and rental construction programs. With over 10 billion dollars in financed loans and around 100,000 units financed, CoreVest offers attractive rates, quick turnaround times and certainty of closing. We work directly with borrowers and brokers. For more information visit www.corevestfinance.com or connect with us on LinkedIn, Twitter, or Facebook.
About Churchill Finance
Churchill Finance (“Churchill”) is a real estate investment company operating since 2014 to capitalize on United States real estate debt, equity and distressed opportunities. The company’s executives have over 100 years of combined real estate experience with a solid track record of investing and managing billions of dollars in US real estate. Churchill was founded to take advantage of tailored one-off opportunities throughout real estate market cycles with a primary focus on downside protection while maximizing risk-adjusted return. Churchill’s value proposition centers on the breadth and depth of experience of its leadership team as well as the development of proprietary technology platforms. For more information on Churchill, visit our website at www.churchillre.com.
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Lisa hartman – SVP, investor relations manager
E-mail: [email protected]
SOURCE Redwood Trust, Inc.