Creative Media shares are surging on Wednesday after it inked a deal to sell its lending division to PG FR Holding, LLC, an affiliate of Atlanta-based Peachtree Group.

Based on the lending division's assets and other information as of Sept. 30, the purchase price is estimated at approximately $44 million (net of debt from a 2023 securitization), subject to adjustments.

After accounting for debt repayment, transaction costs, and other factors, CMCT expects net cash proceeds of around $31 million.

The transaction closure is subject to U.S. Small Business Administration approval and other customary closing conditions.

Strategy, CFO Transition

The sale supports CMCT's strategic priorities of expanding its premier multifamily portfolio, strengthening its balance sheet, and enhancing liquidity.

Since outlining these goals in the third quarter of 2024, the company has completed four refinancings across seven assets, extended debt maturities on two multifamily properties, and fully repaid its recourse credit facility.

Post-sale closure, Barry Berlin will resign as Executive Vice President, CFO, Treasurer, and Secretary of the company.

Brandon Hill will succeed him as CFO and treasurer.

Creative Media expects to release third-quarter 2025 earnings results on Nov. 14.

Price Action: CMCT shares are up over 71% at $8.58 at the last check on Wednesday.

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