Ares Commercial Real Estate Corporation Closes Acquisition of Alliant Capital LLC
Ares Commercial Real Estate Corporation Closes Acquisition of Alliant Capital LLC
Adds $4 Billion Loan Servicing Portfolio
CHICAGO--(BUSINESS WIRE)-- Ares Commercial Real Estate Corporation (NYS: ACRE) announced today that it has closed its previously announced acquisition of EF&A Funding, L.L.C, d/b/a Alliant Capital LLC, for approximately $61 million through a combination of $52.9 million in cash and the issuance of 588,235 shares of ACRE stock with a value of $7.4 million based on the closing price of ACRE's common stock on August 30, 2013 of $12.65. Alliant Capital LLC is a financial services company focused on originating and servicing multi-family loans for various Government and Government-Sponsored Entities ("GSEs"), primarily through the Fannie Mae Delegated Underwriting and Servicing (DUS®) program.
"We expect that the closing of this transaction will benefit our shareholders as it greatly strengthens our direct origination platform while providing further depth to our company through the addition of Alliant's experienced management team and significant servicing operation," said Todd Schuster, Co-Chief Executive Officer of Ares Commercial Real Estate Corporation."Additionally, this accretive transaction should increase book value and provide an opportunity to add meaningful non-interest income which should enhance earnings and dividends in a capital efficient manner."
Following the closing, Alliant Capital LLC will change its name to ACRE Capital LLC, and continue to be led by Ed Hurley. As part of the transaction, ACRE Capital LLC has retained its two warehouse line facilities with $180 million of total availability to finance multi-family loan origination activity. ACRE Capital will be a direct subsidiary of ACRE Capital Holdings LLC, a wholly owned, newly formed taxable REIT subsidiary of ACRE.
"Our entire team looks forward to taking advantage of the potential product and revenue synergies in the combination," said Ed Hurley, President of ACRE Capital LLC. "With ACRE's capital base and platform, we plan to expand our GSE product offering and take advantage of our differentiated value proposition in the market for short- and long-term multi-family loans."
About Ares Commercial Real Estate Corporation
Ares Commercial Real Estate Corporation is a specialty finance company that originates, invests in and manages middle-market commercial real estate loans and other commercial real estate investments. Through its national direct origination platform, Ares Commercial Real Estate Corporation provides flexible financing solutions for middle market borrowers. Ares Commercial Real Estate Corporation intends to elect to be taxed as a real estate investment trust and is externally managed by an affiliate of Ares Management LLC, a global alternative asset manager with approximately $66 billion in committed capital under management as of June 30, 2013 and pro forma for the AREA Property Partners acquisition which closed on July 1, 2013. For more information, please visit ACRE's website at arescre.com.
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. Ares Commercial Real Estate Corporation undertakes no duty to update any forward-looking statements made herein.
Ares Commercial Real Estate Corporation
Carl Drake, 888-818-5298
cdrake@aresmgmt.com
KEYWORDS: United States North America Illinois
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