NEW YORK, Nov. 13 /PRNewswire-FirstCall/ -- Capital Trust, Inc. today announced that it commenced its CT High Grade Mezzanine(SM) investment management initiative having entered into a $250 million separate account with institutional investors to invest on a discretionary basis in senior commercial real estate mezzanine loans and B Notes and related instruments. The separate account will be 100% funded with the institutional investors' committed capital and managed by CT Investment Management Co., LLC ("CTIMCO"), the Company's wholly-owned investment management subsidiary.
"We are pleased to announce our newest investment management product, CT High Grade Mezzanine(SM). Providing discretionary capital to address more senior opportunities in the real estate debt capital structure, this separate account increases the footprint of our origination platform and generates a stream of fee income for CTIMCO. Going forward, we expect to create additional managed vehicles and accounts with targeted investment strategies that are complementary to our balance sheet activities," said John R. Klopp, Chief Executive Officer of Capital Trust.
The CT High Grade Mezzanine(SM) account has a one year investment period with evergreen extension provisions. The account will not employ leverage and CTIMCO will earn a management fee equal to 0.25% per annum on invested assets.
Forward-Looking Statements
The forward-looking statements contained in this news release are subject to certain risks and uncertainties including, but not limited to, new origination volume, the continued credit performance of the Company's loan and CMBS investments, the asset/liability mix, the effectiveness of the Company's hedging strategy and the rate of repayment of the Company's portfolio assets, as well as other risks indicated from time to time in the Company's Form 10-K and Form 10-Q filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
About Capital Trust
Capital Trust, Inc. is a finance and investment management company that specializes in credit-sensitive structured financial products. To date, the Company's investment activities have focused primarily on the U.S. commercial real estate subordinate debt markets. Capital Trust executes its business both as a balance sheet investor and as an investment manager. Capital Trust is a real estate investment trust traded on the New York Stock Exchange under the symbol "CT." The Company is headquartered in New York City.
