NEW YORK–(BUSINESS WIRING) – Fortress Investment Group LLC (“Fortress”) announced today that it has entered into a definitive agreement with Colony Capital (“Colony”) under which one or more Fortress subsidiaries will become the General Partner and Manager of the Colony CDCF series of funds. , co-investment vehicles and other non-digital real estate positions, accounting for approximately $ 2.7 billion in total assets under management. Under the terms of the agreement, Fortress will acquire certain positions in Colony’s non-digital real estate capital accounts, including positions associated with a portfolio of approximately 40 positions covering over 100 properties in Europe and the United States. The total reimbursement is US $ 535 million, subject to normal rules. adjustments.
The deal is a complex sale of Colony’s remaining portfolio of Other Shares and Debts (“OED”), which was reclassified as discontinued last quarter, pending a potential sale, to accelerate Colony’s transition to a fully digital business. Importantly, Fortress provides a “one-stop solution” for disposing of OED Colony’s remaining assets in a single transaction, while ensuring that CDCF investors are always responsibly managed by a leading global investment manager focused on optimizing investment value.
OED’s combined portfolio diversifies by investment type (senior debt, junior debt and equity), underlying asset class (office, hotels, land, apartment buildings), geography (USA, Ireland, Spain, UK and France) and base industry (real estate, securities, energy).
“We are delighted to announce this win-win deal with Colony and look forward to serving new limited partnerships as we work to maximize value across a diverse portfolio, ”said Noah Shore, managing director of Fortress. “This business and its underlying assets fit perfectly with our existing business and our vast experience and expertise in managing highly complex investments across the full spectrum of asset types, structures, industries and geographic regions. ”
“Fortress is a world-class organization, so I know these assets will be stored and managed in the most responsible way in the future, allowing us to focus solely on building the most compelling digital REIT infrastructure in the world, ”said Mark Ganzi. President and CEO of Colony Capital.
The deal is expected to close in the fourth quarter of 2021 subject to normal closing conditions, including regulatory approvals and investor consent requirements.
Moelis & Company LLC acts as the exclusive financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP acts as legal advisor to Fortress Credit Advisors LLC.
About the fortress
Founded in 1998, Fortress manages US $ 53.1 billion in assets as of March 31, 2021 on behalf of approximately 1,800 institutional clients and private investors worldwide through a variety of lending and real estate, private equity and ongoing capital investment strategies.