TPG's MITT to buy Cherry Hill Mortgage in $117.5M REIT merger
What's the deal? TPG Mortgage Investment Trust (MITT)Dealroom has a profile for this one. Try Dealroom → has agreed to acquire Cherry Hill Mortgage Investment Corporation (CHMI)Dealroom has a profile for this one. Try Dealroom → in a cash-and-stock merger valued at $117.5 million. Both are residential mortgage REITs; MITT is managed by an affiliate of TPG, the global alternative asset manager with $327 billion in assets under management.
The terms: CHMI stockholders will receive 0.3063 MITT shares plus $0.93 in cash per share. Based on MITT's August 7, 2026 closing price, that implies $3.10 per CHMI share — a 29% premium to its unaffected close and a 32% premium to its 30-day volume weighted average price.
What's the endgame? MITT wants to build scale. Combining the two portfolios should generate operational efficiencies and accretive earnings, chief executive officer T.J. Durkin said, comparing the deal to MITT's 2023 acquisition of Western Asset Mortgage Capital CorporationDealroom has a profile for this one. Try Dealroom →.
CHMI brings a diversified portfolio of Agency residential mortgage-backed securities and mortgage servicing rights. Its stockholders gain immediate cash plus a stake in the combined company, chief executive officer Jay Lown said.
Why now? CHMI's board ran a competitive process before backing the deal, chairman Joseph Murin said, calling it "in the best interest of CHMI and its stockholders." Both boards approved the merger unanimously.
What's next? The transaction is expected to close in the fourth quarter of 2026, subject to approval from both companies' stockholders and customary closing conditions. On a pro forma basis, MITT stockholders would own roughly 73% of the combined company.
The signal: The deal reflects continued consolidation among residential mortgage REITs, where scale drives cost efficiency in a sector sensitive to interest rates. For TPG, it extends a playbook of rolling up smaller REIT platforms under a larger, better-resourced umbrella.
Read more: Business Wire
Image credit: MarkMoz1980
