Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 08 November 2018

Colony Capital Aims to Sell Another $1Bln of Assets as Part of Re-Focusing Effort

Colony Capital Inc., in the midst of a repositioning away from directly owning assets to a fee-centric business model, is planning to sell up to another $1 billion of assets through next year and use proceeds to originate third-party investment products. That would be on top of the $1.1 billion of non-strategic assets the Los Angeles investment manager has sold so far this year.

Commercial Real Estate Direct Staff Report

Colony Capital Inc., in the midst of a repositioning away from directly owning assets to a fee-centric business model, is planning to sell up to another $1 billion of assets through next year and use proceeds to originate third-party investment products.

That would be on top of the $1.1 billion of non-strategic assets the Los Angeles investment manager has sold so far this year.

The effort, which also included a senior management reshuffling that resulted in the departure of Richard Saltzman as chief executive and will include a 15 percent reduction in the company's global workforce, is expected to help slash overhead by up to $55 million over the next year to year and a half.

Colony's latest moves are designed to expand the company's investment-management platform and increase its fee-generating capabilities. Darren Tangen, Colony's chief financial officer, explained that the company this year had committed $600 million of its own capital to investments, which allowed it to raise $5.2 billion of third-party capital. He added that Colony plans similar volumes next year. "We will become a more...





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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

REITCafe

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  • US REITs Feeling Effects from Turmoil in Greece and China
    International economic forces have taken center stage this week, affecting both US stock markets and REITs. The crash in the Chinese stock market and ongoing concerns about the future of Greece in the eurozone drove markets down during the first half of the week. REITs fared better than the overall market...

  • What Does Increased Construction Mean for Apartment REITs?
    REITs so far this year have raised $17.1 billion of capital through the sale of unsecured notes, bringing the total raised over the past two and a half years to just more than $75 billion. That’s more than they raised during the previous five years. The massive volume shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark...
shouldn’t be a surprise as it comes while the yield from 10-year Treasury bonds, the benchmark against which most REIT’s price their bonds
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