Investment Vehicles Managed by Colony Capital, LLC (CLNY) Complete Acquisition

Investment vehicles managed by Colony Capital, LLC, a private, international investment firm, including Colony Financial, Inc. (NYSE: CLNY), a real estate finance company focused on acquiring, originating and managing commercial mortgage loans (together, “Colony”), today announced the consummation of a structured transaction with the Federal Deposit Insurance Corporation (“FDIC”).

The transaction includes approximately 1,200 loans with an aggregate unpaid principal balance of approximately $1.02 billion, consisting of substantially all commercial real estate loans. Deutsche Bank (NYSE: DB) served as advisor to the FDIC on the sale to Colony Financial, Inc of a 40% managing member equity interest in a newly formed limited liability company created to hold the acquired loans, with the FDIC retaining the remaining 60% equity interest. The portfolio was effectively acquired at approximately 44% of the unpaid principal balance of the loans, with a purchase price by Colony of approximately $90.5 million (net of working capital and transaction costs) for its 40% equity interest. The financing of the transaction includes $233 million of notes provided by the FDIC.