Lehman Brothers Collection - Contemporary Business Archives

Harvard Business School Baker Library Historical Collections

Lehman Brothers Collection

Twentieth-Century Business Archives

Chase Manhattan Mortgage and Realty Trust - Lehman Brothers Collection

Chase Manhattan Mortgage and Realty Trust

List of Deals

In April 1970 Chase Manhattan Bank of New York announced that they would be the first major New York bank to sponsor a closed-end real estate investment trust. Chase chose to create a trust because they felt that traditional mortgage lenders were unable to keep pace with demand for construction, particularly in the residential housing field.

The Chase Manhattan Mortgage & Realty Trust raised $100 million through an initial public offering in June 1970. The trust, which was based in Boston, invested the proceeds primarily in construction mortgage loans. The Chase Manhattan Bank served as investment advisor to the trust and owned its management company.

The trust raised an additional $100 million in May 1971 through an offering of convertible debentures. The purpose for this sale was to pay off commercial paper borrowing and to further the trust's growing participation in the intermediate-term loan and real estate equity areas.

In November 1972 Chase Manhattan Mortgage & Realty Trust had investment commitments totaling approximately $1.5 billion, of which $631 million had been disbursed.

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