EverBank Snares GE’s Business Property Lending Unit
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EverBank's new headquarters in Jacksonville, FL. The company has forged a deal to buy GE Capital's Business Property unit.
JACKSONVILLE, FL-EverBank Financial Corp., based here, is buying GE Capital Real Estate’s Business Property Lending unit in an all-cash $2.5-billion deal announced Monday. The unit lends on essential-use properties owned or leased by small and midsize businesses.
In a conference-call presentation to investors Monday morning, EverBank cited the “high quality loan portfolio” the Business Property acquisition would represent, as well as its potential for diversifying the bank’s balance sheet. Included in the deal are about $2.44 billion of performing commercial loans, Business Property’s origination and servicing platforms, 108 employees in 14 offices nationwide and servicing rights on $3.1 billion of loans securitized by GE Capital.
The presentation also cites Business Property’s 25-year operating history and “seasoned management team.” Average loan size in Business Property’s portfolio is $2.6 million; since 1997, it has originated more than $27 billion of loans, with cumulative lifetimes losses of 1.51%.
