Los Angeles Business Journal

IPO for Colony Spinoff Is Priced

By James Rufus Koren Tuesday, May 28, 2013

The coming public offering of Colony Capital LLC spinoff Colony American Homes could bring in more than $230 million.

Documents filed earlier this year estimated the offering could raise up to $100 million. But Securities and Exchange Commission filings now show Colony American Homes now plans to sell 20 million shares priced between $11.50 and $13, which would raise between $230 million and $260 million.

Colony American Homes, a real estate investment trust, owns nearly 10,000 rental homes in California and the Southwest. Those properties brought in rental income of more than $10 million in the first quarter of this year.

Colony American would be the second publicly traded REIT for Colony Capital, a private equity firm controlled by Los Angeles billionaire Thomas Barrack Jr. The first, Colony Financial Inc., owns real estate-related debt and equity investments and went public in 2009.