Related Cos. has entered into a joint venture with Highbridge Principal Strategies to create a commercial real estate credit investment platform. The companies will invest $800 million to provide gap financing for real estate projects in transition across the country but focusing on “gateway cities” such as New York, Boston, Chicago, Washington, Los Angeles, San Francisco and Miami.
Brian Sedrish will be managing director of the joint venture and its portfolio manager. He will evaluate opportunities to invest in first-lien mortgages, mezzanine loans and preferred equity positions in land deals and non-stabilized assets.
Previously Sedrish was head of acquisitions for the CRE Division (special situations) at Deutsche Bank. Prior to Deutsche Bank, he worked at Fortress Investment Group’s Drawbridge Special Opportunities Fund.
In an unrelated manner, Related said it and Corvex Management LP have obtained support from holders of 70% of the shareholders of CommonWealth REIT on its proposal to remove the entire board of trustees immediately.
However, the board of CommonWealth said the two companies are not in compliance with the REITs by-laws. There is an arbitration hearing scheduled for July 26 on the dispute. In May a Maryland court upheld CommonWealth’s by-law calling for arbitration in the dispute between the two sides.
Corvex and Related had
Since then, Corvex and Related have pursued their case against CommonWealth’s board and have won support from proxy advisory firm ISS for their consent solicitation.
