Vornado Realty Trust has acquired a 26.2 per cent equity interest in LNR Property for a new investment of USD116m in cash and conversion into equity of its USD15m mezzanine loan (current carrying amount) made to LNR's parent.

The investment is part of LNR's recapitalisation, which involved an infusion of a total of USD417m in new cash equity and the reduction of LNR's total debt to USD425m from USD1.3bn.

The other equity participants include affiliates of iStar Financial, Cerberus Capital Management and Oaktree Capital Management.

LNR is a servicer of commercial mortgage loans and CMBS and a real estate, investment, finance and management company.

Vornado Realty Trust is an equity real estate investment trust.