Koch Real Estate Investments Makes $32 Million Long-Term Investment in Ladder Capital Corp
Ladder Capital Corp (“Ladder” or the “Company”) (NYSE: LADR) announced that a subsidiary of Koch Real Estate Investments, LLC has exercised its option to invest $ 32 million in Ladder’s registered capital which resulted in Ladder issuing 4 million shares today.
Koch exercised his option under the April 2020 Strategic Financing Agreement in which Koch agreed to provide senior secured financing of $ 206.4 million to the company to finance transitional and land loans.
“We are excited to have a leading investor like Koch Real Estate Investments as our new long-term equity investor in Ladder,” said Brian Harris, CEO of Ladder.
Jake Francis, President of Koch Real Estate Investments, said: “We respect Ladder’s diligent risk management and credit culture. During the COVID-19 pandemic, ladder management kept its word, took the right steps to protect Ladder’s shareholders , and positioned the company to capitalize on the anticipated shift in the commercial real estate sector over the next several years. Exercising our investment option in Ladder was an easy choice. “
Ladder Capital Corp is an internally managed commercial real estate mutual fund with assets of over $ 6 billion. Our investment objective is to preserve and protect equity while generating attractive risk-adjusted returns. As one of the country’s leading commercial real estate capitalists, we specialize in underwriting commercial real estate and offering flexible capital solutions on a highly developed platform.
Ladder originated and invests in a diverse portfolio of commercial real estate and real estate related assets, with an emphasis on senior secured assets. Our investing activities include: (i) our primary business of providing senior fixed rate and floating rate primary mortgage loans secured by commercial real estate with flexible loan structures; (ii) investment in investment grade securities backed by initial commercial real estate mortgage loans; and (iii) owning and operating commercial real estate, including net rental real estate.
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Ladder was founded in 2008 and is led by Brian Harris, the company’s chief executive officer. He is led by an experienced management team with extensive expertise in all aspects of the commercial real estate industry, including origination, credit, underwriting, structuring, capital markets and asset management. Ladder’s senior management and board members are closely associated with the company’s investors and own over 10% of the company’s equity.
About Koch Real Estate Investments
Koch Real Estate Investments (KREI), headquartered in Dallas, Texas, focuses its efforts on an attractive risk-adjusted capital investment in real estate and operations with an agnostic approach to product, geography and capital position. KREI is acutely focused on first class management teams and flexible capital solutions that align interests to promote mutual benefit with its partners.
Since 2003, Koch companies have invested nearly $ 120 billion in growth and improvement. With a presence in more than 70 countries, Koch companies employ 130,000 people worldwide, including around 65,000 in the USA. From January 2009 until today, Koch companies have received more than 1,300 awards for safety, environmental sustainability, community responsibility, innovation and customer service. Further news and information can be found at www.KOCHind.com.
Forward-Looking Statements and Coronavirus Risk
Certain statements in this press release may be “forward-looking” statements, including statements regarding Ladder’s prospects and ability to benefit from a future shift in the commercial real estate sector. These statements are based on management’s current opinions, expectations, beliefs, plans, goals, beliefs, or projections regarding future events or future results. These forward-looking statements are only predictions, not historical facts, and involve certain risks, uncertainties and assumptions. Actual results, levels of activity, performance, achievements and events could differ materially from those expressed, expected or implied in such forward-looking statements. While Ladder believes his assumptions are reasonable, it is very difficult to predict the effects of known factors, and of course it is impossible to predict all of the factors that could affect actual results, including the effects of the COVID-19 pandemic the company’s business. There are a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained herein, including the risks discussed under the heading “Risk Factors” in each company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and the Quarterly Report on Form 10-Q for the period ended September 30, 2020 and the consolidated financial statements, notes, and other financial information and other filings therein with the Securities and Exchange Commission . Such forward-looking statements speak only as of the date of this publication. Ladder expressly disclaims any obligation or obligation to post updates or revisions to the forward-looking statements contained herein to reflect changes in its expectations regarding them or changes in events, conditions or circumstances on which such statements are based.
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Investor Relations of Ladder Capital Corp.