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Starwood Takes Stake In Corus

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While an official announcement from the F.D.I.C. is expected today, the New York Times is reporting that an investment group led by Starwood Capital Group has outbid competitors in its bid for a stake in Corus' real estate loan pool. "Under the terms of the complex deal, Starwood and its business partners agreed to pay $554 million for a 40 percent equity stake in the loan pool while the F.D.I.C. keeps a 60 percent stake, these people said." With the FDIC still retaining a stake in the assets, "the government hopes that they will be able finish developing the condo projects or turn them into apartments or hotels. The F.D.I.C., therefore, can avoid liquidating the assets in a fire sale that could cripple the industry-backed fund even more." [NY Times]