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Principal Real Estate Investors and Macquarie Group Join Forces in CMBS Market

Business Wire
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Principal Real Estate Investors, the dedicated real estate group of Principal Global Investors, and Macquarie Group, announced today they are creating Principal Commercial Capital, a lending platform focused on originating and securitizing commercial mortgages in the commercial mortgage-backed securities (CMBS) market.

Principal Real Estate Investors and Macquarie will jointly manage the nationwide lending platform. Principal Real Estate Investors will source, underwrite, close and service loans. Macquarie will provide funding and capital markets expertise.

“We are very excited to launch this platform and expand our presence once again in the CMBS market,” said Margie Custis, managing director for Principal Real Estate Investors. “This venture will enable Principal Real Estate Investors to offer a wider menu of options for our borrowers and leverage the strengths of both firms.”

“Principal Real Estate Investors and Macquarie have highly complementary teams and areas of expertise,” said Timothy Gallagher, Managing Director and Head of Commercial Real Estate Markets at Macquarie. “Our shared vision and discipline differentiates us from other CMBS lenders, and we look forward to serving both borrower and investor clients.”

Principal Real Estate Investors, through its affiliates, has a lengthy track record as a CMBS loan originator and seller. The firm has contributed almost 2,000 loans totaling more than $16 billion to more than 50 securitizations, including the TOP and PWR shelves. Macquarie has recently hired a team of CMBS veterans, led by Timothy Gallagher, to expand its presence in the U.S. commercial real estate market.

About Principal Real Estate Investors
Principal Real Estate Investors manages or subadvises $52.6 billion in commercial real estate assets1. The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group(R).

About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs approximately 13,900 people and has assets under management of over US$396 billion (as of March 31, 2014).

1 As of June 30, 2014.

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