CMCT has agreed to sell its lending division to PG FR Holding, an affiliate of the Peachtree Group, for a transaction value of approximately $44 million net of debt. The deal is expected to generate about $31 million in net cash proceeds for CMCT and is contingent on the U.S. Small Business Administration’s consent and other customary closing conditions. The parties anticipate closing in the fourth quarter of 2025.
The sale represents a deliberate shift in CMCT’s business strategy. By divesting the lending platform, the company will reduce operating complexity and free capital to concentrate on its core real‑estate portfolio, particularly premier multifamily assets. The transaction is intended to strengthen CMCT’s balance sheet, improve liquidity, and position the firm for future development and potential asset sales in the multifamily market.
As part of the transaction, CMCT’s Executive Vice President, Chief Financial Officer, Treasurer and Secretary, Barry Berlin, will step down upon closing. Brandon Hill will assume the CFO and Treasurer roles, ensuring continuity in financial leadership while aligning the company’s financial management with its new strategic focus. Berlin’s departure is tied to his role in the sale, as he will join the buyer as part of the transition.
CMCT’s financial performance in recent quarters has been challenged by declining revenue growth, a high debt‑to‑equity ratio, and net losses. The proceeds from the sale are expected to alleviate these pressures by bolstering liquidity and reducing leverage. Management has indicated that the capital will be deployed to accelerate multifamily development projects and to support the sale of non‑core assets, thereby reinforcing the company’s long‑term growth strategy.
The announcement has generated a strong market reaction, with investors viewing the divestiture as a positive step toward financial stability and a clearer focus on high‑margin real‑estate operations. The move is widely interpreted as a signal that CMCT is committed to improving its balance sheet and concentrating on its core asset class.
In summary, the sale of the lending division to PG FR Holding marks a significant milestone in CMCT’s strategic transformation. The transaction will provide the capital and operational focus needed to pursue growth in the multifamily sector while improving the company’s financial health and positioning it for future opportunities.
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