The Canada Pension Plan Investment Board has teamed up with global investment giant Blackstone to acquire a 20% stake in a new joint-venture that holds US$16.8 billion in commercial real estate mortgages

The JV was created following U.S.-based Signature Bank’s collapse. The loan portfolio comprises more than 2,600 first mortgages on retail, market rate multi-family and office real estate located primarily located in the New York metropolitan area. 

CPPIB, through its CPPIB Credit Investments subsidiary and funds affiliated with Rialto Capital, have partnered on the JV with two Blackstone subsidiaries and the U.S. Federal Deposit Insurance Corporation. The FDIC is Signature Bank’s receiver and the mortgages have been retained in receivership.

The FDIC will own 80% of the JV, the partners said in a news release issued by CPPIB. Blackstone will serve as the portfolio’s lead asset manager and Miami-based Rialto Capital will act as the loan servicer and operating partner..