Capital LLC has formed a new wholly owned real estate finance subsidiary called Colony Financial, which will acquire, originate and manage a diversified portfolio of real estate-related debt instruments. The company initially intends to focus primarily on acquiring, originating and managing commercial mortgage loans, which may be performing, subperforming and nonperforming loans (including loan-to-own strategies), and other commercial real estate-related debt investments, including commercial mortgage-backed securities. The company has not made any investments as of the filing of its Securities and Exchange Commission registration statement. It will commence operations upon completion of the proposed offering. Colony Financial intends to elect and qualify to be taxed as a real estate investment trust for U.S. federal income tax purposes, commencing with its initial taxable year ending Dec. 31, 2009. Merrill Lynch & Co. is acting as the underwriter of the proposed offering. SOURCE: Colony Capi
