NEW YORK, February 14, 2018 / PRNewswire / – Terra Capital Partners (“Terra”), loc New York City The now-based real estate loan asset manager announced that it has entered into an investment and partnership agreement with Axar Capital Management LP (“Axar”). The transaction is expected to deliver significant strategic benefits to Terra by combining Terra’s track record and expertise in real estate financing with Axar’s expertise in real estate capital, credit and capital markets.
Terra, specializing in mezzanine finance and managing funds for individual investors, has financed more than 300 properties of all types across the country. The company started $ 2 billion of capital and has built a strong track record in real estate financing over its fifteen year history. Currently, Terra $ 450 million of the discretionary capital administered.
“This is an exciting milestone in Terra history and we are excited to be working with Axar,” he said Bruce Batkin, Terra Co-Founder and Chief Executive Officer. “Axar’s sense of investing across the real estate capital structure combined with Terra’s hands-on experience with real estate lending will enhance our ability to create and manage assets and facilitate the creation of new products that provide income, stability and diversification to investors.”
The strategic and financial benefits of the transaction are expected to include:
- Expanded Investment Opportunities: This partnership allows Terra to expand its investment mandate beyond its core focus on providing mezzanine loans, bridge loans and preferred equity investments.
- Improved Resources and Experience: The partnership gives Terra greater resources and improved ability to raise, audit and manage assets and fund the portfolio.
- Extended experience: The Axar team has in-depth expertise and many years of experience investing in real estate, which expands Terra’s existing procurement and execution capacities. Previously, the Axar Real Estate team headed the North American real estate business at Mount Kellett Capital Management.
In Terra, Bruce Batkin will remain Chief Executive Officer, Dan Cooperman will remain Chief Originations Officer, Greg Pinkus will remain CFO and co-founder, Simon Mildébecomes deputy chairman. Vik UppalAxars Head of Real Estate will move to Terra full-time as Chief Investment Officer and member of the Board of Directors.
Mr. Batkin added, “The Terra team is thrilled to have Vik join them as CIO. His real estate investment experience will be of tremendous importance to the company and its clients and will be a key differentiator for Terra.”
Prior to joining Axar, Mr. Uppal served as the general manager of the investment team for the loan and real estate funds of Fortress Investment Group and co-head of North American real estate investments at Mount Kellett Capital Management.
The transaction was approved by special committees composed solely of independent directors from two of the Terra investment vehicles.
For more details, see the latest report on Form 8K filed by Terra Secured Income Fund 5, LLC in February , 2018.
CenterCap Group, LLC and Clifford Chance LLP advised Terra. Kirkland & Ellis LLP advised Axar.
About Terra Capital Partners
Terra Capital Partners is a New York City based real estate loan asset manager that raises and manages loans created by high quality commercial real estate in The United States. Terra has financed more than 300 properties of all types nationwide and has a strong track record in its fifteen year history.
About Axar Capital Management LP
Axar Capital Management LP is an investment manager focused on value-based and opportunistic investing. Axar’s investment team focuses on opportunities across the capital structure and across multiple sectors. The company strives for attractive prices in relation to intrinsic value and invests in event-driven situations with clear catalysts and asymmetrical potential returns. Headquartered in New York City, the company was founded by Andrew Axelrod, former co-head of North America for Mount Kellett Capital Management.
This press release contains certain forward-looking statements. Words such as “further,” “could,” “expected,” “future,” “potential,” “seeks,” and “will” or similar expressions are intended to identify forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Terra cannot guarantee that its expectations will be met or that past performance will continue. Terra assumes no obligation to update these statements for changes or additions after the date of this publication, unless required by law.
This press release does not constitute an offer of securities for sale in any jurisdiction.
Jonathan Keehner /. Ed Trissel /. Julie Oakes
Joel Frank, Wilkinson Brimmer Katcher
And Gagnier /. Patrick Reynolds
SOURCE Terra Capital Partners