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| iStar acquires Fremont's commercial real estate business Santa Monica-based Fremont General Corporation, doing business primarily through its wholly-owned industrial bank, Fremont Investment & Loan, announced agreements for the sale of its commercial real estate lending business, the sale of a minority interest in the company and the appointment of new senior management. iStar Financial Inc., a leading publicly traded finance company focused on the commercial real estate industry, confirmed it will pay $1.9 billion to acquire Fremont's commercial real estate lending business and a 30 percent interest in Fremont's $6.5 billion commercial loan portfolio, with Fremont retaining a 70 percent stake. iStar said it will acquire only Fremont's commercial real estate business, with eight office locations across the country. The company said it plans to retain the majority of Fremont's employees and integrate them with iStar's more than 200-person team of investment and real estate professionals. Fremont also said an investor group led by Gerald J. Ford will acquire $80 million of Fremont stock options and preferred stock in the company's banking subsidiary, Fremont Investment & Loan. Mr. Ford will become chairman of the board. The iStar transaction is subject to regulatory clearance and customary closing conditions and is expected to close by June 30, 2007. The minority investment is expected to close within 30 days following receipt of final regulatory approval. write your comments about the article :: © 2007 Construction News :: home page |