Colony Capital, LLC and Investor Consortium Announce Two Transactions with FDIC

LOS ANGELES--(BUSINESS WIRE)-- A consortium of investors organized 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, announced today that it participated in the acquisition of two separate structured transactions with the Federal Deposit Insurance Corporation ("FDIC") comprised of two portfolios of loans, one concentrated in the Western part of the United States (the “West portfolio”) and one concentrated in the Northern part of the United States (the “North portfolio”).

For the North portfolio, Colony Capital and The Cogsville Group (“Cogsville”) teamed with entities affiliated with WL Ross & Co. LLC and Invesco Ltd. to acquire 557 loans with an aggregate unpaid principal balance of approximately $204 million. For the West portfolio, Colony Capital and Cogsville worked with Mount Kellett to purchase 198 loans with an unpaid principal balance of $137 million. The purchase price was 27% and 60% of the unpaid principal balance of the loans for the North and West portfolios, respectively.

The combined transactions include approximately 755 loans, with an aggregate unpaid principal balance of approximately $340 million, consisting of substantially all commercial real estate loans. On both transactions Milestone Advisors served as advisor to the FDIC on the sale of the 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. In each case, the FDIC provided 1:1 leverage financing bearing a zero percent interest rate. Colony Financial’s equity participation in the two investments totaled $5 million.

About Colony Capital, LLC

Founded in 1991 by Chairman and Chief Executive Officer Thomas J. Barrack, Jr., Colony Capital is a private, international investment firm focusing primarily on debt and equity investments in real estate-related assets and operating companies. The firm has invested more than $39 billion in over 8,800 assets through various corporate, portfolio and complex property transactions. Colony has a staff of more than 200 and is headquartered in Los Angeles, with offices in New York, Boston, London, Madrid, Paris, Rome, Beirut, Hong Kong, Beijing, Tokyo, Seoul and Taipei. For more information, visit www.colonyinc.com.

About Colony Financial, Inc.

Colony Financial, Inc. is a real estate finance and investment company that is focused primarily on acquiring and originating commercial real estate loans and real estate-related debt at attractive risk-adjusted returns. Secondary debt purchases may include performing, sub-performing or non-performing loans (including loan-to-own strategies). Colony Financial has elected to be taxed as a real estate investment trust, or REIT, for U.S. federal income tax purposes. Colony Financial is a component of the Russell 2000® and the Russell 3000® indices. For more information, visit www.colonyfinancial.com.

Forward-Looking Statements of Colony Financial, Inc.

This press release may contain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. Statements regarding the following subjects, among others, may be forward-looking: the ability to pay dividends in a timely manner or at all; the payment or amount of any special dividend; the use of proceeds of the Company's initial public offering; and the Company's ability to maintain its qualification as a REIT for U.S. federal income tax purposes.

All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, of new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the section entitled "Risk Factors" in the Company's final prospectus relating to the Company's initial public offering filed with the Securities and Exchange Commission on September 24, 2009, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.

Investor Contact:
Colony Financial, Inc.Darren TangenChief Financial Officer
(310) 552-7230
or
Addo Communications, Inc.Andrew Blazier(310) 829-5400
[email protected]
or
Media Contact:
Owen Blicksilver P.R., Inc.Kristin Celauro(732) 433-5200
[email protected]

Source: Colony Financial, Inc.