Colony Capital and the affiliates of Wafra have forged a strategic investment agreement whereby Wafra will acquire a minority stake in Digital Colony, a subsidiary of Colony Capital.
Wafra is expected to invest more than $400 million in the Digital Colony platform. Colony Capital plans to use the proceeds to invest in high-quality digital infrastructure assets that deliver consistent returns for its shareholders and grow its digital investment-management business.
Colony Capital said Wafra’s investment will provide Digital Colony with permanent capital to pursue strategic investments across the digital-infrastructure ecosystem, including cell towers, data centers, fiber and small cells.
The investment builds on a previous relationship between Wafra and Digital Colony, which began in 2017 when Wafra invested alongside Digital Bridge, a Digital Colony subsidiary, and backed Digital Colony’s inaugural $4.1 billion Digital Colony Partners I fund.