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Seven Hills Realty Trust Enters Into $100MM Financing Facility with BMO Harris Bank

November 12, 2021, 07:10 AM
Filed Under: Real Estate

Seven Hills Realty Trust entered into an agreement for a $100 million note on note financing facility with BMO Harris Bank, which it may use to leverage its commercial mortgage loan investments. Loans issued under the financing facility will be co-terminus with the pledged mortgage loan investments, are not subject to margin calls and allow for up to an 80% advance rate, subject to certain loan to cost and loan to value limits. Interest on advancements under the facility will be calculated at SOFR plus an applicable margin.

Doug Lanois, Chief Financial Officer and Treasurer, made the following statement: “This new financing arrangement with BMO Harris is a significant step in executing our strategy to diversify SEVN’s capital sources. SEVN has a substantial pipeline of lending opportunities and this note on note facility provides us capital that matches the term of the underlying loans and will not subject us to mark to market provisions. It presents an attractive way to enhance our financing mix and increase investment returns for our shareholders as we continue to scale SEVN’s loan portfolio.”

Seven Hills Realty Trust is a real estate finance company that originates and invests in first mortgage loans secured by middle market and transitional commercial real estate. SEVN is managed by Tremont Realty Capital, a wholly owned subsidiary of The RMR Group LLC. The RMR Group LLC is an alternative asset management company, majority owned by The RMR Group Inc. (Nasdaq: RMR), with over $32 billion in assets under management and 35 years of institutional experience in buying, selling, financing and operating commercial real estate.

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