Starwood Capital Group To Buy Corus Bank Assets

The Federal Deposit Insurance Corp. (FDIC) has signed a bid confirmation letter to sell a 40% equity interest in a limited liability company (LLC) created to hold assets of Corus Bank NA, Chicago, to a consortium managed by Starwood Capital Group that also includes TPG Capital, Perry Capital and WLR LeFrak.

The sale was conducted on a competitive bid basis, with a total of eight bidders submitting bids to purchase an ownership interest in the LLC. The FDIC will convey to the LLC a portfolio of predominantly performing and nonperforming construction loans and real estate owned (REO) assets with an unpaid principal balance of approximately $4.5 billion.

The FDIC initially will hold a 60% equity interest in the LLC.

Corus Bank failed on Sept.11, and the FDIC immediately entered into a purchase and assumption agreement with MB Financial Bank NA, Chicago, to assume all of the deposits of the institution and approximately $3 billion of the assets, comprised mainly of cash and marketable securities. The Starwood transaction completes the sale of the majority of the remaining assets of Corus Bank and is expected to close this month.



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