Mitsubishi launches CMBS origination business in the US
Mitsubishi Corporation, through its US alternative asset management subsidiary MC Asset Management Holdings, will form a new 50/50 joint venture, MC-FMC Commercial Real Estate Finance Management, with Five Mile Capital Partners,
Mitsubishi Corporation, through its US alternative asset management subsidiary MC Asset Management Holdings, will form a new 50/50 joint venture, MC-FMC Commercial Real Estate Finance Management, with Five Mile Capital Partners,
Mitsubishi Corporation, through its US alternative asset management subsidiary MC Asset Management Holdings, will form a new 50/50 joint venture, MC-FMC Commercial Real Estate Finance Management, with Five Mile Capital Partners, an asset management firm specialising in real estate debt and related products.
Mitsubishi Corporation, through its US alternative asset management subsidiary MC Asset Management Holdings, will form a new 50/50 joint venture, MC-FMC Commercial Real Estate Finance Management, with Five Mile Capital Partners, an asset management firm specialising in real estate debt and related products.
Mitsubishi Corporation, through its US alternative asset management subsidiary MC Asset Management Holdings, will form a new 50/50 joint venture, MC-FMC Commercial Real Estate Finance Management, with Five Mile Capital Partners, an asset management firm specialising in real estate debt and related products.
Mitsubishi Corporation, through its US alternative asset management subsidiary MC Asset Management Holdings, will form a new 50/50 joint venture, MC-FMC Commercial Real Estate Finance Management, with Five Mile Capital Partners, an asset management firm specialising in real estate debt and related products.
The venture will underwrite senior commercial mortgage loans to be contributed to CMBS securitization trusts and will aim to originate over USD1bn of loans annually. In the US, along with real estate investment trusts, CMBS has traditionally been used as a means for investors to access the real estate market. In the wake of the financial crisis, a decrease in investor appetite, along with financial institutions having to pull out from the market, led to a large drop in CMBS issuance. Today, with a stabilising market and investor appetite increasing again for less leveraged and conservative real estate related debt products, CMBS issuance is recovering. However, with financial institutions facing stronger regulations such as Basel III on the one hand, and the market facing maturities of those CMBS issued in 2005 - 2007 on the other hand, there is a strong need for new lenders to take the place of financial institutions. Mitsubishi Corporation, through MC Asset Management Holdings, aims to leverage this opportunity to enter into the CMBS origination business, providing a solution for institutional investors seeking products that are securitized by quality underlying assets, while acting as a financial intermediary between investors and the real estate market.
