Colony Capital Inc. has agreed to merge with NorthStar Asset Management Group Inc. and NorthStar Realty Finance Corp., both of New York. The new company will be called Colony NorthStar Inc. and hold $58 billion in assets.
Colony’s Executive Chairman Thomas J. Barrack Jr., based in L.A., will become the new firm’s executive chairman.
“This is an amazing combination of three highly compatible companies with complementary strategic priorities,” he said in a statement. As Colony NorthStar, the company will have both the capacity and the balance sheet to invest across various locations, asset types, and capital structures, he added.
The combined company will save about $115 million a year by joining forces, according to a press release. Colony shareholders will take about 33.3 percent of the company once the deal is completed, which is expected for the start of next year.
Colony has invested more than $60 billion through various funds and investment vehicles over the last 25 years. Its investments include offices, hotels, Napa vineyards, Swiss hospitals, and a stake in Sam Nazarian’s SBE hospitality group.
This is the third big merger in recent years for Barrack, who ranked 38 on the Business Journal’s Wealthiest Angelenos list with a net worth of $1.53 billion. Colony Capital was born in 2014 when Barrack’s private equity firm, also called Colony Capital, combined with his publicly traded REIT, Colony Financial. Barrack merged his Colony Starwood Homes REIT with the Starwood Waypoint Residential Trust in January to form Colony Starwood Homes, a publicly traded company with $7.7 billion in assets.
Barrack, a one-time associate of Donald Trump, told CNN last week that he had secured $32 million in financial commitments for the Republican presidential candidate through a new super PAC.