Reed Smith advised leading real estate investment trust Franklin BSP Realty Trust, Inc. (FBRT) in an agreement to acquire NewPoint Holdings JV LLC, a privately held commercial real estate finance company. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions, including regulatory approvals.
FBRT intends to finance the acquisition through a combination of existing cash and issuance of debt and equity. FBRT will operate the acquired business through a taxable REIT subsidiary. According to FBRT’s press release, NewPoint's existing $54.7 billion servicing portfolio provides a predictable and durable income stream. The mortgage servicing rights on agency loans will be held as an asset on FBRT’s consolidated balance sheet and provide an avenue for potential book value growth.
The Reed Smith team advising on the deal included Financial Industry Group partners Randy Eckers, Michael Estreicher and Will Atherton. Reed Smith advised as co-counsel together with Hogan Lovells.
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