Colony Capital has acquired from four German banks a portfolio of non-performing commercial real estate loans that has a face value of nearly $523 million.

The Santa Monica investment firm said the collateralized loans, proceeds of which were used to develop properties primarily in Berlin and Frankfurt in the 1990s., were held by Eurohypo, Landesbank Hessen-Thüringen (Helaba), Berlin Hyp and Archon Capital Bank.

Dilip Awtani, managing director and head of Colony’s Europe Debt Strategies, said the transaction was the first time syndicated loans were sold together by a German banking consortium as a non-performing loan package.

“We believe the underlying properties are attractive commercial real estate investments that can be re-positioned into core-plus or similar properties," Awtani said in a statement.

Colony Capital, led by billionaire Chief Executive Thomas J. Barrack Jr., specializes in real estate-related debt and equity investments.

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