Colony Capital, real estate money management firm NorthStar Asset Management Group and NorthStar's former parent NorthStar Realty Finance are in exclusive merger negotiations, said a joint statement.
Colony and NorthStar Realty Finance are jointly proposing a tri-party all-stock merger with NorthStar Asset Management based on historical stock prices, creating a real estate and investment management equity REIT.
Company executives declined to provide further terms of the proposed transaction.
NorthStar Asset Management Group spun out of real estate investment trust NorthStar Realty Finance in June 2014.
NorthStar Asset Management has $38 billion in assets under management as of Dec. 31. It has an 84% interest in real estate money manager and consulting firm Townsend Group, which has $184 billion under management and advisement.
Separately, Colony Capital reported $18.2 billion in assets under management as of March 31, down 3% from Dec. 31, according to Colony Capital's first-quarter earnings report released Monday. The company earnings release attributed the decline to the sale of a non-fee-earning private equity investment. Colony's earnings were also negatively affected by two 2006 vintage funds.
Colony Capital has been on the acquisition trail lately. In January, Colony Capital business Colony American Homes completed a merger with another homes-for-rent business, Starwood Waypoint Residential Trust, forming the $7.7 billion Colony Starwood Homes.
