NEWTON, Mass.--(BUSINESS WIRE)--The RMR Group Inc. (Nasdaq:RMR) today announced the acquisition of the
business of Tremont Realty Capital LLC, or Tremont, a firm that
specializes in commercial real estate finance. Tremont principally
raises debt and equity capital for owners of commercial real estate and
serves as a manager of funds invested in commercial real estate loans.
Since its founding in 2000, Tremont has completed over $4.6 billion
worth of commercial real estate transactions and currently has over $200
million of real estate loans under management. Tremont is headquartered
in Boston, MA and has offices in: New York, NY; Chicago, IL; Newport
Beach, CA; Hartford, CT; and Annapolis, MD.
RMR’s majority owned subsidiary, The RMR Group LLC, acquired the assets
of Tremont for an upfront purchase price of $2.2 million, excluding
transaction costs. Tremont also has the right to receive an “earn out”
over the next two years based on a portion of payments that RMR receives
from Tremont’s historical business.
“We are excited to announce the acquisition of Tremont, RMR’s first
acquisition since becoming a public company in December 2015,” said Adam
Portnoy, President and Chief Executive Officer of RMR. “We believe that
the commercial real estate finance business is a logical extension of
our existing operations and may provide RMR with a platform for
additional growth. We also think this acquisition may enable RMR to
participate in what we believe is a growing need for lending to middle
market commercial real estate borrowers at a time when banks and certain
other traditional commercial real estate lenders have pulled back from
this market as a result of increased regulation of their businesses. We
welcome the Tremont team to RMR, and look forward to supporting their
growth and expanding their operations as part of our company.”
“We are pleased that RMR recognizes the value of our platform, and we
are excited about the opportunities that this transaction will provide
for our business and our employees,” said Richard Gallitto and Daniel
Mee, co-founders of Tremont who are joining RMR as Senior Vice
Presidents. “With the support of RMR’s resources and scale, we believe
that we may be positioned to expand our business and take advantage of
favorable trends in the middle market commercial real estate lending
marketplace. We thank our employees for their hard work and dedication
to our business over the years, and look forward to our next chapter as
part of RMR.”
The CenterCap Group, LLC served as advisor to Tremont in this
transaction.
ABOUT THE RMR GROUP
The RMR Group Inc. is a holding company and substantially all of its
business is conducted by its majority owned subsidiary, The RMR Group
LLC. The RMR Group LLC is an alternative asset management company that
primarily provides management services to publicly traded REITs and real
estate operating companies. As of June 30, 2016, The RMR Group LLC had
approximately $23.4 billion of real estate assets under management,
including more than 1,300 properties, and employed over 400 real estate
professionals in 30 offices throughout the United States; the companies
managed by The RMR Group LLC collectively had over 50,000 employees. The
RMR Group Inc. is headquartered in Newton, Massachusetts.
ABOUT TREMONT REALTY CAPITAL
Tremont Realty Capital will operate as a separate division of The RMR
Group LLC that specializes in commercial real estate finance. Tremont
will principally raise debt and equity capital for owners of commercial
real estate and serve as a manager of funds invested in commercial real
estate loans. For more information about Tremont Realty Capital, please
visit www.tremontcapital.com.
WARNING CONCERNING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS WITHIN THE
MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND
OTHER SECURITIES LAWS. RMR’S FORWARD LOOKING STATEMENTS CAN BE
IDENTIFIED BY THE USE OF WORDS SUCH AS “OUTLOOK”, “BELIEVE”, “EXPECT”,
“POTENTIAL”, “WILL”, “MAY”, “ESTIMATE”, “ANTICIPATE”, AND DERIVATIVES OR
NEGATIVES OF SUCH WORDS OR SIMILAR WORDS. RMR’S FORWARD LOOKING
STATEMENTS ARE BASED UPON ITS PRESENT BELIEFS OR EXPECTATIONS. HOWEVER,
RMR’S FORWARD LOOKING STATEMENTS AND THEIR IMPLICATIONS ARE NOT
GUARANTEED TO OCCUR AND MAY NOT OCCUR FOR VARIOUS REASONS, INCLUDING
SOME REASONS BEYOND RMR’S CONTROL. FOR EXAMPLE:
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THIS PRESS RELEASE STATES THAT RMR’S ACQUISITION OF TREMONT’S ASSETS
MAY PROVIDE A PLATFORM FOR ADDITIONAL GROWTH BY EXPANDING RMR’S
BUSINESS INTO COMMERCIAL REAL ESTATE FINANCE. INTEGRATION AND
EXPANSION INTO NEW BUSINESSES CAN BE DIFFICULT, TIME CONSUMING AND/OR
MORE EXPENSIVE THAN ANTICIPATED, MAY NOT PRODUCE THE BENEFITS RMR
EXPECTS AND MAY EXPOSE RMR TO INCREASED LIABILITIES.
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THIS PRESS RELEASE STATES THAT THIS ACQUISITION MAY ENABLE RMR TO TAKE
ADVANTAGE OF WHAT IT BELIEVES IS A GROWING NEED FOR LENDING TO MIDDLE
MARKET COMMERCIAL REAL ESTATE BORROWERS AT A TIME WHEN BANKS AND
CERTAIN OTHER TRADITIONAL COMMERCIAL REAL ESTATE LENDERS HAVE PULLED
BACK FROM THIS MARKET AS A RESULT OF INCREASED REGULATION OF THEIR
BUSINESSES. THERE CAN BE NO ASSURANCE THAT BANKS AND OTHER TRADITIONAL
COMMERCIAL REAL ESTATE LENDERS WILL CONTINUE TO PULL BACK FROM THIS
MARKET, AND THEY MAY BEGIN TO INCREASE THEIR LENDING TO THIS MARKET IN
THE FUTURE. FURTHERMORE, OTHER LENDING SOURCES MAY EMERGE OR INCREASE
THEIR PARTICIPATION IN THIS MARKET. RMR MAY FAIL TO SUCCESSFULLY
COMPETE, OR TO SUCCESSFULLY TAKE ADVANTAGE OF OPPORTUNITIES THAT ARE
AVAILABLE IN THIS MARKET.
THE INFORMATION CONTAINED IN RMR’S FILINGS WITH THE SECURITIES AND
EXCHANGE COMMISSION, OR THE “SEC,” INCLUDING UNDER THE CAPTION “RISK
FACTORS” IN RMR’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES
OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM RMR’S FORWARD
LOOKING STATEMENTS. RMR’S FILINGS WITH THE SEC ARE AVAILABLE ON ITS
WEBSITE AT WWW.SEC.GOV.
EXCEPT AS REQUIRED BY LAW, RMR UNDERTAKES NO OBLIGATION TO UPDATE ANY
FORWARD LOOKING STATEMENT, WHETHER AS A RESULT OF NEW INFORMATION,
FUTURE DEVELOPMENTS OR OTHERWISE.
Contacts
The RMR Group Inc.
Timothy A. Bonang, 617-796-8230
Senior Vice
President