Digital Colony Management, the private equity arm of Colony Capital Inc., has agreed to a complex two-step transaction process to purchase an El Segundo-based real estate development company.
The value of the overall transaction was not disclosed, but the transaction includes a payment of $ 972 million to Landmark Infrastructure Partners, a publicly traded arm of Landmark Dividend.
The privately held Digital Colony has $ 30 billion in assets under management and operates in four key segments, including data centers, macrocell towers, fiber networks and small cell networks.
Colony Capital was headquartered in downtown until early this year when the company moved its operations to Boca Raton, Florida. The company, led by Chief Executive Officer Marc Ganzi, manages a $ 46 billion real asset portfolio on behalf of its shareholders and limited partners, including digital real estate investments through Digital Colony.
In the first stage of the transaction, Digital Colony has agreed to purchase Landmark Dividend, a real estate and infrastructure acquisition and development company focusing on digital infrastructure, wireless communications, outdoor advertising and renewable energy production industries.
Because this is a private transaction, details were not disclosed, a spokesperson for Colony Capital said. The acquisition of Landmark Dividend is expected to close in “several weeks,” according to a company statement.
The second part of the transaction includes the payment of nearly $ 1 billion to Landmark Infrastructure Partners.
Landmark Dividend currently manages over 5,000 created assets on behalf of Landmark, its active private equity vehicles and Landmark Infrastructure Partners LP.
Landmark Dividend holds, among other things, 100% of the interests in the general partner supervising Landmark Infrastructure Partners and 13.2% of the common shares representing the interests of the limited partners in the listed company.
In trading on Monday, shares of Landmark Infrastructure Partners closed at $ 12.80, up 83 cents.
âWe are confident that this acquisition by Digital Colony will allow us to accelerate our pursuit of strategic consolidation in our fragmented industry and drive long-term growth,â said Tim Brazy, Managing Director of Landmark Dividend, in a statement.
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