Thursday, March 28, 2024
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HomeReal Estate NewsIndustrialColony Capital on the move again- sells industrial portfolio for $400M

Colony Capital on the move again- sells industrial portfolio for $400M

Just as Colony Capital’s CEO Marc Ganzi told Connected Real Estate Magazine Publisher Rich Berliner during an exclusive fireside chat a few weeks ago, the company has sold the last of its Bulk Industrial Portfolio and is now out of that asset. The deal was reported at $400 million and created $85 million in net equity proceeds.

“We made terrific progress on our digital transformation this quarter,” Ganzi said during the company’s third quarter earnings report. “Bringing high-quality digital assets onto the balance sheet, growing our digital investment management franchise, and harvesting value from our legacy assets are our key priorities.”

Ganzi also told Berliner that Colony’s focus was on digital assets and that the company was going to exit the rest of its non-digital assets. Additionally, Ganzi noted three significant deals during this recent quarter, GlobeSt.com reports. The deals included Databank’s acquisition of zColo, closing the Vantage hyperscale data center acquisition and selling its hospitality business.

“When you combine those milestones along with a strong recovery in our underlying businesses, we returned to positive Core FFO ex-gains,” Ganzi said.

Colony also sold six hotel portfolios that comprised 22,000 rooms and 197 properties in a $2.8 billion transaction to Highgate in September. The sale created $67.5 million of gross proceeds on a consolidated basis and the assumption of $2.7 billion in consolidated investment-level debt, GlobeSt.com reports. Colony exited the hospitality market with the sale. Meanwhile, the company’s hospitality segment was re-categorized as discontinued operations, per its third quarter earnings report.

Currently, Colony has been looking to acquire assets that are more in line with its new digital infrastructure strategy. The company now possesses $23.3 billion in digital assets under management, which make up half of its total managed assets.

“We’re very pleased to announce the sale of our Bulk Industrial Portfolio,” Ganzi said in a statement. “The sale keeps us on track to hit our 2020 OED monetization targets and adds valuable fuel to power our digital transformation. I’d also like to acknowledge and thank everyone at Colony who helped successfully execute on the sale under these challenging conditions — congratulations to the whole team.”

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