Santander closes deal with FDIC to serve multifamily properties

Bank Santander closes deal with Federal Deposit Insurance Corporation (FDIC) to service Signature Bank's multifamily residential properties.

Santander Bank announced that it has closed a deal with the Federal Deposit Insurance Corporation (FDIC) for a joint venture that includes a $9 billion portfolio of New York multifamily residential properties left behind by the FDIC after the failure of Signature Bank. The bank acquired a 20% stake in the joint venture for $1.1 billion at an attractive price and will service 100% of the assets in the portfolio.

"This transaction underscores our strength and scale, building on our significant expertise in this area," said Ana Botin, executive chairman of Santander Bank. "We are a major participant in the U.S. multifamily housing market, and this transaction plays in our favor. "

The bank has a $13.5 billion multifamily portfolio, is a leading lender of multifamily residential real estate in the U.S. and has a high Community Reinvestment Act (CRA) rating.

"Santander USA is one of the top ten lenders and servicers of multifamily residential real estate, and this transaction will strengthen our position in the New York metro market," said Tim Vennes, head of Santander USA and president and CEO of Santander Bank.

The U.S. remains a strategic market for Banco Santander, as this deal shows. The loan portfolio in the joint venture consists of three pools of multifamily loans with controlled and stabilized leases. The deal will be positive from 2024 and will require approximately two basis points of Santander Group's CET1 to be repaid over three years.

Santander was advised on the deal by Wachtell, Lipton, Rosen & Katz, Davis Polk and Chain Bridge Partners.

O Santander US

Santander Holdings USA, Inc. (SHUSA) is a wholly owned subsidiary of Spain's Banco Santander, S.A. (NYSE: SAN) (Santander), a global banking group with 166 million customers in the U.S., Europe and Latin America. As the intermediate holding company for Santander's U.S.

O Santander Bank, N.A.

Santander Bank, N.A. is one of the largest retail and commercial banks in the country with $99 billion in assets. The bank, with corporate offices in Boston, has approximately 9,000 employees and more than 2 million customers primarily residing in Massachusetts, New Hampshire, Connecticut, Rhode Island, New York, New Jersey, Pennsylvania and Delaware. The Bank is a wholly owned subsidiary of Spain's Banco Santander, S.A. (NYSE: SAN), one of the most respected banking groups in the world with 166 million customers in the U.S., Europe and Latin America. It is controlled by Santander Holdings USA, Inc. an intermediate holding company of Banco Santander in the United States. For more information about Santander Bank, please visit www.santanderbank.com.