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SoftBank Considering Sale of Fortress Investment Group

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SoftBank founder Masayoshi Son, Fortress Investment Group president Peter Briger (Wikipedia, Long Arc Capital, Getty)

After suffering record quarterly losses, SoftBank is considering selling a key player in US real estate.

Masayoshi Son’s firm has begun talks to sell Fortress Investment Group, Bloomberg reportSon disclosed the talks on Monday, the same day SoftBank announced a $23.4 billion net loss.

Son didn’t mention a specific partner in the discussion about Fortress, a key real estate player.But last month, Bloomberg report Abu Dhabi’s Sovereign Wealth Fund Mubadala has revealed that it is in talks for a deal valued at more than $1 billion for Fortress.

Softbank announced acquisition of fortresses, In February 2017, it became one of the more active lenders of New York real estate. The deal was valued at $8.08 per share, or $3.3 billion overall.

The acquisition was intended to bring more investment talent in-house to SoftBank. Fortress was founded in his 1998, and in 2007 he went public with a $634.3 million IPO, debuting at his $18.50 per share.

As of the fourth quarter, Fortress had $53.3 billion in assets This includes $34.5 billion worth of real estate and other private credit equity assets. In the late 2000s, Harry McCraw’s equity office became a household name in New York real estate when he financed a catastrophic purchase of a portfolio. Fortress also acted as a relief lender for Kent Swig,Detail is The Real Deals new book, “New Kings of New York”.

Fortress last month overturned industrial property Purchased at a premium of $10 million just 6 months ago. His 50,000-square-foot building in Moreno Valley, California was sold to Bridge Investment Group for his $29.3 million.

Fortress from June to February last year, At least $259 million On a small industrial estate in the Inland Empire.

The past few years have not been kind to SoftBank, which was devastated by the WeWork implosion in 2019 and the drop in global tech stocks. The company was recently forced to depreciate the value of companies in its portfolio, including Coupang and SenseTime.

SoftBank also lost talent.Chief Operating Officer and WeWork Executive Chairman this year Marcelo Claure leaves From the investment group amidst compensation discrepancies.

— Holden Walter Warner

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