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Tornoto’s Home Capital Group has agreed to sell a group of commercial mortgages to private equity real estate investment firm KingSett Capital for $874M (C$1.17B) in cash to bolster its finances.
Proceeds from the alternate lender’s portfolio will go toward its $1.5B credit facility, Bloomberg reports. This is one of a series of steps taken by the lender to resurface from its near-collapse in April after being accused of mortgage fraud.
“This transaction will help the company further stabilize its liquidity position and highlights the flexibility and options created by the quality of our assets,” Home Capital interim CEO Bonita Then said in a statement.
It is estimated the company will lose roughly $15M in the deal due to the health of the portfolio, and the agreement is estimated to close in Q1.
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