Colony Capital Sells Stake In 2 Office Properties For $351M


Global investment firm Colony Capital Inc. has sold its 74% stake in 2 office properties in Dublin for gross proceeds of $351 million to Blackstone Property Partners Europe Holdings.

The sale provides Colony Capital (CLNY) with additional funds for making digital investments along with advancing its Other Equity and Debt (OED) Monetizations.

The two office properties, Burlington Plaza and The Three Building, are located in Dublin’s city center. (See Colony Capital stock analysis on TipRanks)

Burlington Plaza is a 238K square foot office complex and The Three Building is a 157K square foot office property in the South Docks. Net equity proceeds to Colony Capital are $102 million.

Interests in the 2 properties were held under Colony’s ‘Tolka Irish NPL Portfolio’ within Other Equity and Debt (OED) portfolio holdings. Post this transaction it will continue to own a number of assets in Ireland on a debt-free basis.

At present, Colony Capital manages a $52 billion real assets portfolio. This includes digital real estate investments of $30 billion through the company’s digital infrastructure platform, Digital Colony.

Last month, KBW analyst Jade Rahmani reiterated a Hold rating on the stock while raising the price target to $7 (3.5% upside potential) from $4.25. Rahmani noted higher value for Colony’s digital infrastructure and confidence in management as reasons for the upward price revision.

Consensus on the Street is that Colony Capital is a Strong Buy based on 3 Buys and 1 Hold. The average analyst price target of $7.31 implies upside potential of 8.1%.

Shares have gained about 217.5% over the past year.

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