New York based Fortress Investment Group recently announced a deal with Colony Capital that will see the global asset management firm’s subsidiaries become manger and general partners to Colony’s various CDFC funds, investment vehicles and non-digital real estate positions.
These new assets are said to be worth $2.7 billion. With this agreement, Fortress Investment Group is set to acquire some of Colony’s capital account positions in non-digital real estate. The deal also includes 40 positions covering more than 100 properties in the U.S. and Europe with a total consideration of $535 million subject to periodic changes.
This deal is a representation of a comprehensive sale of Colony’s OEDs, which was reclassified as discontinued operations to quicken Colony’s transition into a fully digitized business. With Fortress Investment Group backing Colony, the company can get a one-stop solution for their OED assets as well as assured responsible stewardship for the CDCF investors.
Noah Shore, Fortress Investment Group Managing Director, recently expressed the firm’s joy at working with the new limited partners brought by Colony as they work towards optimizing value across multiple industries.
According to Noah, the new portfolio fits perfectly with the expertise and experience at Fortress Investment Group. This means the team can effectively manage complex investments featuring various asset types, structures, industries and in several locations.
The New York based Fortress has built a solid reputation for providing world-class stewardship and management of assets. It is for this reason that Colony’s CEO Marc Ganzi opted to trust the firm with this deal to allow them to focus their attention on developing a world-class digital infrastructure REIT.
With both sides still ironing a few edges of the deal, the agreement is set to take effect in the fourth quarter of 2021. Some of the pending issues include a customary closing that includes regulatory approvals and consent from investors. Go Here for related Information.