Marathon Real Estate plans $200m IPO(2)

The property arm of the New York-based hedge fund has filed documents for a $200m publicly traded REIT focused on investments in real estate debt.

Marathon Real Estate Finance, a real estate investment trust managed by the property arm of New York-based hedge fund Marathon Asset Management, has filed for a $200 million (€148 million) initial public offering. The REIT will focus on commercial real estate debt investments in the US

According to documents filed with the Securities and Exchange Commission, the REIT will look to invest in mezzanine loans, commercial mortgage-backed securities, preferred equity and credit tenant-leased real estate.

The vehicle will hit the ground running with $1.3 billion worth of acquired assets, including $886 million of assets financed in a collateralized debt obligation. Not including its CMBS investments, around half of the portfolio is in New York and California and around half is invested in the office and lodging sectors. 

The REIT’s stock will be listed on the New York Stock Exchange under the MRR ticker, according to the filings.

Last year, Marathon originated $471 million in commercial real estate deals, up from $8 million in 2003. In 2004, Marathon Asset Management established Marathon Real Estate, which is led by John Halpern, to focus on opportunistic real estate strategies. Thus far, the property investment group has financed a wide variety of deals in the US, in addition to transactions in Latin America, India and Europe.