Colony Capital Buys CRE-Secured Nonperforming Loans

Colony Capital LLC, Los Angeles, has acquired a commercial real estate-secured nonperforming loan portfolio from BAG Bakaktiengesellschaft, Hamm, Germany, with a face value of $90 million. "The transaction marks the first NPL acquisition in Europe for Colony during this new distressed cycle," the Los Angeles-based company said. Morgan Lewis was the legal and tax advisor for Colony on the transaction. Dilip Awtani, a managing director who heads Colony's distressed efforts in Europe, said he sees value in underlying real estate in Germany and other European countries that he believes Colony will be able to benefit from. The company seeks to realize this value by helping banks monetize illiquid assets and positioning itself to benefit from an eventual recovery.