Investors led by Starwood Capital Group LLC and TPG bid 20% more than their nearest competitor to win an auction for the real estate assets of failed Chicago lender Corus Bankshares Inc., people familiar with the matter said.
The cash provided by the Starwood-led group would be $554 million, compared with about $450 million for the next highest bid, said the people, who declined to be identified because the decision has not been announced.
Including debt financing and an equity investment from the government, the bid values the assets at $2.77 billion, about half their face value, the people said.
The Starwood and TPG group, which also includes WL Ross & Co. and Perry Capital LLC, valued the Corus assets at about $500 million more than the next highest bids, said the people. Other bidders, which included the New York developer Related Cos. and the private-equity firm Colony Capital LLC, put the portfolio at about $2.25 billion, the people said.