MC Asset Management Holdings and Five Mile Capital Partners have teamed up to launch a joint venture company, MC-FMC Commercial Real Estate Finance Management.
The new company will underwrite and originate commercial mortgages to be contributed to CMBS securitization pools. Mitsubishi Corporation (parent of MCAMH), through an affiliate, is providing a $100 million financing facility to capitalize the joint venture, which with third-party leverage will give the joint venture the capability to originate over $1 billion of loans annually.
As an investor, Mitsubishi Corporation has had a long relationship with Five Mile Capital. “We are very pleased to have this opportunity to partner with Five Mile Capital in this business. They have an excellent reputation in the commercial real estate sector,” said Kenji Kobayashi, chief operating officer at MCAMH.
The commercial real estate industry was hard hit in 2007-08, but is showing signs of recovery. According to the National Association of Realtors May 2012 Commercial Real Estate Outlook, “With fundamentals improving and investments growing, the commercial real estate market is poised to offer good performance into the remainder of 2012.”
“We are excited to be partnering with Mitsubishi Corporation on this venture, particularly at this time. The U.S. commercial real estate market is facing an impending wall of maturities at a time when traditional originators and underwriters are still stressed. This joint venture will provide a vehicle through which MCAMH and FMC can capitalize on this opportunity, and is a natural extension of our existing real estate businesses in the U.S.,” said Konrad Kruger, managing member of FMC.
MC Asset Management Holdings is an alternative asset management firm that provides alternative investment products to global institutional investors. Five Mile Capital Partners, which boasts over $2 billion of assets under management, is an alternative investment and asset management company specializing in investment opportunities in commercial real estate, debt products, structured finance, asset-based lending and financial services private equity.