Terra Property Trust, Inc. (TPT) and Western Asset Mortgage Capital Corporation (WMC) have announced a definitive merger agreement to form a new real estate investment trust (REIT). The combined company is expected to possess approximately $1.2 billion in assets and $436 million of adjusted book value, with TPT stockholders owning 76% of the common stock and WMC stockholders owning 24%.
The purpose of this merger is to provide increased operational scale, cost synergies, capital preservation opportunities as well as long-term investment prospects in a diversified credit-oriented platform. Vik Uppal, chief executive officer of TPT commented: “This combination offers an exceptional chance for us to establish a REIT that prioritizes capital preservation while consistently generating attractive risk-adjusted returns for its shareholders.”
