NEW YORK (TheStreet) -- Colony Financial (CLNY) shares are down 1% to $24.33 in trading on Wednesday after the real estate investment and financial services company announced that it bought industrial properties company Cobalt Capital Partners for $1.6 billion.
The company said that 70% of the purchase price will be financed by GE Capital Real Estate (GE) , while the rest of the deal will be financed through equity.
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"We have consistently signaled that Colony Financial can achieve additional growth and diversification by launching focused platforms that will grow foundational returns and pursue expansion through bolt-on acquisitions," said the company.
TheStreet has further coverage of the deal here.
TheStreet Ratings team rates COLONY FINANCIAL INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate COLONY FINANCIAL INC (CLNY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."