FDIC-run Signature Bridge Bank sells 20% stake of $16.8 billion real estate portfolio

(Reuters) -The Federal Deposit Insurance Corp-run Signature Bridge Bank said on Thursday it has sold 20% of its equity stake in the venture that holds a $16.8 billion real estate loan portfolio, which it had retained in receivership of the failed bank.

Blackstone Real Estate Income Trust, Canada Pension Plan Investment Board and other investors paid $1.2 billion for a 20% equity stake in the venture, the investors said in a separate statement.

Signature Bridge Bank was created after state regulators closed New York-based Signature Bank in March and the FDIC took control.

In September, the FDIC had announced the start of a marketing process for the nearly $33 billion Commercial Real Estate (CRE) loan portfolio it retained.

Signature Bank’s demise was the third-largest failure in U.S. banking history and came two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Krishna Chandra Eluri)