Fortress to be acquired for $3.3B by Japanese telecom giant

SoftBank hoping to bring investment talent in-house

New York /
Feb.February 15, 2017 09:00 AM

Fortress Investment Group — the $70 billion investment manager that’s an active lender in New York real estate — is being acquired for $3.3 billion.

Japanese telecom giant SoftBank Group Corp. will buy the publicly-traded company for $8.08 per share — a 39 percent premium — the companies announced. SoftBank will operate Fortress alongside a soon-to-be formed $100 billion technology investment fund.

Fortress TRData LogoTINY principals Pete Briger, Wes Edens and Randy Nardone will continue to run the company within SoftBank, Bloomberg reported. Fortress was founded in 1998 and went public in 2007 in a $634.3 million IPO, debuting at $18.50 a share.

But the company’s performance slumped during the financial crisis and has traded as low as $.077 per share.

SoftBank’s acquisition is aimed at bringing investment talent in-house, a company spokeswoman said. The deal, which is subject to shareholder and regulators’ approval, is expected to close by the end of the year.

SoftBank has made $44 billion worth of investments and acquisitions since 2015, as it’s moved from being a telecom operator into a diversified investment company.

In a statement, founder Masayoshi Son said the Fortress deal would “expand our group capabilities” alongside a soon-to-be-established $100 billion Vision Fund platform.

The firm aims to close the first round of investment in the fund this month. SoftBank is contributing $25 billion to the fund, along with $45 billion from Saudi investors and $1 billion each from Apple Inc., Qualcomm Inc. and Oracle Corp. Chairman Larry Ellison.

Fortress is among the lenders on Extell Development’s Central Park Tower, specifically the $235 million refinancing of the firm’s land loan.

In 2015, Fortress sold its stake in the Stuyvesant Town-Peter Cooper Village complex — which it owned through subsidiary CWCapital — for $5.3 billion.  [Bloomberg]E.B. Solomont

(To read more about Central Park Tower, click here)


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
SoftBank founder Masayoshi Son, Fortress Investment Group principal Peter Briger (Wikipedia, Long Arc Capital, Getty)
Fortress on chopping block as owner SoftBank bleeds
Fortress on chopping block as owner SoftBank bleeds
Sen. Mitt Romney and Sen. Kyrsten Sinema (Getty)
Developers, rejoice: Carried-interest loophole is saved again
Developers, rejoice: Carried-interest loophole is saved again
Stephen Schwarzman, Senator Joe Manchin, and Senate Majority Leader Charles Schumer (Illustration by The Real Deal with Getty Images)
Real estate scores loophole to save loophole
Real estate scores loophole to save loophole
Senator Chuck Schumer and Senator Joe Manchin (Illustration by Kevin Cifuentes for The Real Deal with Getty)
Manchin-Schumer deal closes real estate tax loophole
Manchin-Schumer deal closes real estate tax loophole
15 Hanover Place in Downtown Brooklyn (Lonicera Partners, Getty)
Lonicera scores $134M loan for DoBro tower
Lonicera scores $134M loan for DoBro tower
(Getty)
CMBS volume plunges 29% in second quarter
CMBS volume plunges 29% in second quarter
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...