Ladder Capital Realty Finance Inc, a prospective real estate investment trust, set the terms on Thursday for its planned $400 million initial public offering.

Ladder Capital estimates it will sell 20 million shares for $20 apiece, according to an updated prospectus filed with the U.S. Securities and Exchange Commission.

The IPO is expected to price on Sept. 29, and begin trading the following day, one of the IPO's underwriters said.

Ladder Capital plans to use the deal's proceeds to originate, buy and manage a portfolio of commercial real estate first mortgage loans secured by income-producing properties.

The REIT will be managed by a subsidiary of Ladder Capital Group, whose investors include the private equity firms TowerBrook Capital Partners LP, and GI International LP.

The IPO will be managed by J.P. Morgan, Wells Fargo Securities and Citi. The underwriters will have the option to purchase another 3 million shares.

Ladder Capital said it will list on the New York Stock Exchange under the symbol LCG.

(Reporting by Phil Wahba, editing by, Maureen Bavdek)

Investment Citigroup