Terra Property Trust, Western Asset Mortgage Capital Form New REIT
Terra Property Trust, Inc. (TPT) and Western Asset Mortgage Capital Corporation (WMC) have announced a definitive merger agreement to form a new real estate investment trust (REIT) with approximately $1.2 billion in assets and $436 million of adjusted book value.
Under the agreement, TPT stockholders are expected to own approximately 76% of the combined company’s common stock, while WMC stockholders will own approximately 24%. The merger aims to provide increased operational scale, cost synergies, and long-term investment opportunities in a diversified, credit-oriented platform. The combined company looks to prioritize capital preservation, maintain a strong balance sheet, and generate attractive risk-adjusted returns for shareholders.
“This compelling combination is a unique opportunity to establish a diversified REIT that prioritizes capital preservation, maintains a robust balance sheet, and consistently generates attractive risk-adjusted returns for its shareholders,” said Vik Uppal, chief executive officer of TPT.
Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money.
With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.