Colony Financial Inc., a newly formed subsidiary of Century City investment firm Colony Capital LLC. said Tuesday that it had filed for an initial public offering of its common stock .

Colony Financial plans to acquire, originate, and manage a portfolio of real estate-related debt, including performing, sub-performing and non-performing loans, the company said in its U.S. Securities and Exchange Commission filing. The company's initial focus will be on commercial real estate.

The company, which intends to qualify as a real estate investment trust for tax purposes, said it will not make any investments until completion of the proposed offering.

Merrill Lynch & Co. is acting as the underwriter.

Colony Capital was founded in 1991 by investor and developer Tom Barrack. Its primary focus is on commercial and residential real estate and the hospitality and gaming industries.

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