US private equity firm Colony Capital is negotiating the acquisition of real estate assets owned by debt-laden Spanish property company Colonial, newspaper Cinco Dias reported on Thursday. According to the paper, Colony Capital is mainly interested in Colonial's 15% stake in construction firm Fomento de Construcciones y Contratas, but the private investor has also approached the Spanish property group with regards to its shopping centre unit, Riofisa, as well as the company's 84% stake in French unit Societe Fonciere Lyonnaise (SFL).
US private equity firm Colony Capital is negotiating the acquisition of real estate assets owned by debt-laden Spanish property company Colonial, newspaper Cinco Dias reported on Thursday. According to the paper, Colony Capital is mainly interested in Colonial's 15% stake in construction firm Fomento de Construcciones y Contratas, but the private investor has also approached the Spanish property group with regards to its shopping centre unit, Riofisa, as well as the company's 84% stake in French unit Societe Fonciere Lyonnaise (SFL).
Colonial said earlier this year it was planning to sell its stake in SFL to comply with the latest legislation on SIICs, the French equivalent of a real estate investment trust. Under the SIIC 4 law a single shareholder may hold no more than 60% of a SIIC from 2009. The company acquired Riofisa as well as the FCC stake two years ago for an aggregate price of EUR 3.5bn.
