Real estate manager Colony Capital has gone public as a real estate investment trust, spokeswoman Caroline Luz said in an e-mail.
Colony Capital went public by combining with its existing REIT, Colony Financial. The transaction was approved by a majority of Colony Financial’s shareholders at a special meeting Tuesday. The public firm will now be called Colony Capital Inc. and will retain the REIT’s CLNY ticker symbol.
In the future, the goal is for the REIT to makes its investments through the funds; historically Colony Financial had acquired properties directly on its balance sheet, Ms. Luz explained in an e-mail.
Up to 1,427,608 of Colony’s Class A common stock was offered under the prospectus and the price was $26.06 at close. The market cap of the firm is $2.87 billion.
The company will be led by Thomas J. Barrack Jr., executive chairman, and Richard B. Saltzman, CEO, who have both entered into five-year employment contracts with Colony.
Colony Capital will continue to raise money for new private equity real estate funds and other investment vehicles. Some 60% of any carried interest will be retained by Colony Capital, with 40% to be allocated to Colony’s management team, investment professionals and other individuals.
Colony Capital investors include the $181.6 billion Florida State Board of Administration, Tallahassee; $16.7 billion Louisiana Teachers’ Retirement System, Baton Rouge; and $3.9 billion Fresno County (Calif.) Employees’ Retirement Association, all of which made commitments to Colony Distressed Credit & Special Situations Fund III, a real estate debt fund.
