Colony acquires German NPL portfolio

The Los Angeles-based firm has acquired a portfolio of loans from cooperative bank Bankaktiengesellschaft. The loans have a face value of $90m, no financial details were disclosed.

Colony Capital has bought a portfolio of non-performing loans from a German cooperative bank, just days after it acquired €1.5 billion of debt loaned to embattled Spanish company Inmobiliaria Colonial.

The Los Angeles-based private equity real estate firm said today the German portfolio, acquired from Bankaktiengesellschaft (BAG) bank, had a face value of $90 million, but did not disclose further financial information.

Colony said BAG sold the loans to allow it to focus on servicing non- and sub-performing loans from other cooperative banks in Germany.

Dilip Awtani, who was hired in June to lead Colony’s distressed acquisitions efforts in Europe, said there were “significant opportunit[ies]” over the next few years to buy underperforming real estate assets from traditional lenders searching for liquidity.

“There is enormous value in the underlying property in Germany and other European countries,” the former GE Capital executive director added.

Earlier this week, it was reported that Colony and Orion Capital Managers had joined forces to buy up to €1.5 billion of debt loaned to Colonial from Goldman Sachs. The deal was valued at approximately €950 million.