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Colony’s Thomas Barrack Focuses on Real Estate Debt

 

Colony’s Thomas Barrack Focuses on Real Estate Debt

Colony Capital has raised $7B for a series of investment vehicles that focus on distressed property debt and lending. The company was quietly taken public in November and merged into the publicly traded REIT Colony Financial. Since that time, the reconfigured firm has gained 7% including dividends while churning out consistent interest income. The eventual goal is to morph into a mortgage REIT whose price reflects its yield, according to Bloomberg. Colony’s Executive Chairman, Thomas Barrack Jr. (shown), said of the company, "It's no different than Blackstone, except it’s a REIT with a large balance sheet of capital. It’s the first structure of its kind. You’ll see more of them.” Fortune dubbed Barrack the world’s greatest real estate investor a decade ago, but he took a beating on some failed deals during the financial crisis. All future Colony investments will be made through his reconfigured firm, which has managed capital and direct holdings totaling $18B. [Bloomberg]