CENTURY CITY, CA-Colony Capital will invest $512 million in fund capital in office, industrial and multifamily properties. Richard Saltzman, New York City-based president of Colony Capital, tells GlobeSt.com that the fund, called Colony Realty Partners, will target assets "throughout the United States."
The Colony Realty Partners fund is something of a departure from the company's typical investments in that it will invest in stabilized, income-producing properties. Colony is primarily an opportunity fund and value-added investor and, although the new fund targets stabilized US assets, Saltzman tells GlobeSt.com that the fund will also invest in some value-added deals.
Colony has chosen to focus on stabilized, income-producing assets in the US because of the "more efficient and more competitive" US market, which reduces the availability of value-added plays but also reduces the risk on income-producing assets. Colony still has a number of funds that focus on opportunistic investments internationally. In a deal reported recently on GlobeSt.com, for example, Kingdom Hotels International and Colony Capital agreed to pay $3.9 billion for all of the outstanding shares of Fairmont Hotels & Resorts, which also owns the Raffles brand.
The Colony Realty Partners fund was launched in June and is now closed. The company is now raising funds for a new vehicle that will invest in real estate securities, but Saltzman declined to discuss the name of the fund or how much capital it is expected to raise. Published reports say that it's called Colony Edge and is funded at $80 million.
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