Starwood Property Trust Inc and investment firm Starwood Capital Group said they would buy LNR Property LLC for $1.05 billion in cash to expand the trust's real estate servicing and financing business.
Diversified real estate investment firm LNR Property is owned by hedge funds Cerberus Capital Management, Oaktree Capital Management, commercial lender iStar Financial Inc and Vornado Realty Trust.
Starwood Capital Group will pay $197 million for LNR's U.S. Commercial Property Group and for 50 percent of LNR's ownership in real estate site Auction.com.
Starwood Property will pay $856 million for the rest of LNR's assets, including its U.S. special servicing business.
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