Terra Property’s main business is investing in commercial real estate loans. Meanwhile, Western Asset finances and manages a portfolio of residential real estate loans and assets. The companies plan to sell off WMC’s assets and redeploy capital into floating-rate, low-LTV commercial loans.
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“This compelling combination is a unique opportunity to establish a diversified REIT that prioritizes capital preservation, maintains a robust balance sheet, and consistently generates attractive risk-adjusted returns for its shareholders,” said Vik Uppal, who will be the chairman and CEO of the combined REIT.
“With reduced leverage levels and increased liquidity as a combined company, we believe WMC shareholders will greatly benefit from the partnership of a well-capitalized institutional partner in TPT, which brings a proven track record and has developed broad and deep expertise investing across cycles, property types, and markets,” Wongtrakool added.
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