LOS ANGELES—Confirming published reports earlier this month,Colony Financial said Wednesday that it wouldacquire Cobalt Capital Partners and its30-million-square-foot industrial portfolio for$1.6 billion. Comprised mainly of light industrial, the portfoliospans 16 markets across the US, with an emphasis on the Atlanta,Chicago and Dallas metro areas, and represents the LosAngeles-based REIT's first foray into a full-scaleindustrial platform. A spokeswoman declined comment on whetherColony Financial had made previous investments in the sector.

“We have consistently signaled that Colony Financial can achieveadditional growth and diversification by launching focusedplatforms that will grow foundational returns and pursue expansionthrough bolt-on acquisitions,” says ThomasBarrack, executive chairman of Colony Financial. “Amarket-leading presence in the light industrial space is oneimportant manifestation of this strategy.”

Barrack terms the Cobalt platform “a highly coveted portfolio ofstrategically located assets, in high growth markets, wellpositioned to benefit from a strengthening economy in the nextphase of the business cycle.” Richard Saltzman,Colony Financial's CEO, cites the “embedded growth opportunities”from investments such as the Cobalt platform, adding that “weexpect the capitalization for this acquisition will ultimatelyinclude substantial third party co-investment capital.”