WINSTON-SALEM, N.C., Aug. 23 /PRNewswire-FirstCall/ -- BB&T Corporation
(NYSE: BBT) principal subsidiary Branch Banking and Trust Company today
said it plans to buy commercial real estate finance company Collateral Real
Estate Capital LLC of Birmingham, Ala.
BB&T would combine Collateral with Laureate Capital LLC, its existing
commercial mortgage banking firm, and give BB&T one of the largest full-
service commercial and multifamily mortgage banking companies in the
nation. The combined company would have a commercial real estate servicing
portfolio of more than $20 billion.
The transaction is subject to regulatory approval and investor consents
and is expected to be completed in the fourth quarter. The combined
company's new name and brand will be announced at closing. Terms were not
"This acquisition is consistent with our announced strategy to add high
quality, well managed, nonbank financial services companies," said Clarke
Starnes, BB&T's manager of Specialized Lending. "Partnering with the very
experienced professionals at Collateral will significantly strengthen our
commercial mortgage franchise with a compatible business and management
The combined company will offer a full range of commercial real estate
financing programs, including life insurance companies, pension funds,
commercial mortgage-backed securities and proprietary products. The company
also will be a Fannie Mae DUS (R) (Delegated Underwriting and Servicing)
lender, a Freddie Mac Program Plus (R) Seller/Servicer, and will offer
multifamily products insured by the Federal Housing Administration (FHA).
The combined company's projected originations for 2007 are more than $9
With a $10 billion loan servicing portfolio in 43 states, Laureate
Capital primarily arranges permanent commercial and multifamily real estate
loans. It also services loan portfolios, and provides asset and portfolio
management, and real estate brokerage services. Operating predominately in
the Southeast and mid-Atlantic, Laureate Capital has about 150 employees in
its 17 offices and Charlotte, N.C.-based corporate headquarters and loan
"This will be a transforming event for Laureate Capital and BB&T, one
that will substantially increase our specialty product lines -- including
the addition of a Fannie Mae platform along with enhanced Freddie Mac
geographic coverage," said Laureate Capital President and Chief Executive
Officer Thomas Dennard, who will be named chief executive officer of the
"This merger provides additional needed depth in highly qualified
management and producer personnel. It will also add a complete array of
capital solutions along with our life insurance and commercial
mortgage-backed securities placement capabilities. With the increased
capabilities, we plan to provide both third-party and on-book bridge
financing to facilitate and position long-term financing opportunities."
With a $10 billion loan servicing portfolio, Collateral provides debt
and equity capital as well as consulting and advisory services for all
types of commercial and multifamily real estate across the nation. One of
the largest privately owned commercial mortgage companies in the nation,
Collateral's production volume was more than $5 billion in 2006.
Collateral has about 180 employees in its 14 offices and Birmingham,
Ala.- based corporate headquarters and loan servicing center. Laureate
Capital and Collateral will combine overlapping offices in Atlanta,
Birmingham, Indianapolis and Jacksonville, Fla.
Corporate headquarters for the new company will be in Charlotte, with
underwriting for Freddie Mac, Fannie Mae, FHA and proprietary loan
operations remaining in Birmingham. The loan servicing centers will
continue to operate in both cities.
"A merger with Laureate is a growth opportunity too promising to pass
up," said Collateral President and CEO David Roberts, who will be named
president and chief operating officer of the new company.
"Especially when you consider we also will benefit tremendously from
our association with BB&T and its strong balance sheet and investment
ratings. In all, we'll gain an expanded delivery network for Collateral's
investment partners and enhanced access to capital markets and proprietary
Laureate Capital operates production offices that serve Alabama,
Florida, Georgia, Indiana, Kentucky, Maryland, Mississippi, North Carolina,
Pennsylvania, South Carolina, Tennessee, Virginia, West Virginia and
Washington, D.C. BB&T acquired Laureate in 2000. More information about the
company is available at www.laureatecap.com. More information about
Collateral is available at www.collateral.com.
The acquisition would expand BB&T's commercial mortgage operation into
Kansas City; Milwaukee; Dallas; Ft. Lauderdale, Fla.; Orlando, Fla.;
Minneapolis; Chicago; Columbus, Ohio; and Madison, Wis.
Winston-Salem, N.C.-based BB&T Corporation (NYSE: BBT) and its
subsidiaries offer full-service commercial and retail banking and
additional financial services such as insurance, investments, retail
brokerage, mortgage, corporate finance, consumer finance, payment services,
international banking, leasing and trust.
BB&T operates more than 1,500 financial centers in the Carolinas,
Virginia, Maryland, West Virginia, Tennessee, Kentucky, Georgia, Florida,
Alabama, Indiana and Washington, D.C.
With $127.6 billion in assets, BB&T Corporation is the nation's 11th
largest financial holding company. More information about the company is
available at www.BBT.com.
SOURCE BB&T Corporation