Affiliates of New York-based Wafra Inc. will acquire a minoritystake in Digital Colony, the digital investment management divisionof Colony Capital.

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Wafra is expected to plow more than $400 million into theDigital Colony platform, including permanent capital to pursueinvestments in cell towers, data centers, fiber, and smallcells.

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"We are thrilled to welcome Wafra as a strategic investor inDigital Colony," Marc Ganzi, CEO of Colony Capital, said in aprepared statement. "This investment will build on our successfulearly investments together, while accelerating Colony Capital'slong-term growth strategy."

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Wafra's work with Los-Angeles based Colony Capital goes back to2017 when Wafra first invested alongside Digital Bridge, a DigitalColony subsidiary. Wafra supported Digital Colony's inaugural $4.1billion Digital Colony Partners I fund, the first fund of its kinddedicated solely to investing in digital infrastructure.

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"Digital Colony has all the attributes of the most successfulmanagers we have partnered with: a top management team with a trackrecord of success, a differentiated strategy, and exposure to alarge, growing opportunity set," Russell Valdez, chief investmentofficer of Wafra, said in a company statement. "At Wafra, we have atrack record of backing managers that are leaders in theirrespective sectors, and Digital Colony's distinction in digitalinfrastructure is best-in-class."

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Colony Capital manages $50 billion in real assets on behalf ofits shareholders and limited partners, Included in that figure ismore than $20 billion in digital real estate investments madethrough Digital Colony.

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Wafra and its affiliates manageassets and commitments of approximately $25billion. 

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Last month, Colony Capital and Vantage Data Centers led aninvestment group in a multi-billion-dollar partnership aimed atexpanding Vantage's data centers in North American and Europe. TheColony-led group will invest $1.2 billion in Vantage's portfolio,including 12 stabilized North American data centers, which spanmore than 1.4 million gross square feet.

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In January, Wafra Capital Partners and Nightingale Propertiessecured a $145 million fixed-rate loan to acquire 111Wall St. in Downtown Manhattan. The 1968 property, formerly knownas the Citibank Building, stands 24 stories tall and spans 1.1million square feet.

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In its investment deal with Digital Colony, Wafra was advised byBofA Securities as its exclusive financial advisor and by FriedFrank as legal advisor. Colony Capital was advised by Sullivan& Cromwell and Morgan Lewis as legal advisors.

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Cheryl Miller

Cheryl Miller, based in Sacramento, covers the state legislature and emerging industries, including autonomous vehicles and marijuana. She authors the weekly cannabis newsletter Higher Law. Contact her at [email protected]. On Twitter: @CapitalAccounts