Move will expand the combined firm’s investment portfolio to nearly $1 billion
RMR Mortgage Trust and Tremont Mortgage Trust announced that their proposed merger has been finalized as of Friday.
Originally announced back in April, the initial merger is expected to create a “larger, more diversified commercial mortgage REIT.” The combined company will operate under the name Seven Hills Realty Trust and trade on the Nasdaq under the ticker symbol “SEVN.” On a pro forma basis, SEVN will have a loan portfolio that includes:
- Twenty-two first mortgages with an aggregate loan commitment of $519 million
- Average funded loan size of $21 million
- Weighted average maximum maturity of 3.2 years
- Weighted average interest rate of LIBOR plus 3.91% and a weighted average loan-to-value of 66%
“We are excited to have completed this merger resulting in SEVN becoming a larger, more diversified mortgage REIT with an expanded capital base, increased operating efficiency and improved access to capital markets,” said Tom Lorenzini, president of SEVN. “We look forward to expanding SEVN’s investment portfolio to nearly $1 billion when fully invested and generating attractive, risk-adjusted returns for our shareholders as we continue our focus on middle-market commercial mortgage lending.”
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RMRM shareholders own approximately 70% of the combined firm’s outstanding common shares, while TRMT shareholders own 30%. Tremont Realty Capital, formerly Tremont Realty Advisors, will manage SEVN and has waived any termination fee that would otherwise be payable by TRMT as a result of the merger.
