Fortress Investment Group Acquisition
Fortress Investment Group (FIG) is a publicly owned company that has thousands of investors and offices in Los Angeles, Philadelphia, New York City, Hong Kong, Singapore, and Italy. The company was founded in 1998 by five investors. These investors included financial industry veterans Peter Bridger and Wes Edens.The company has had its fair share of ups and downs of late. During its initial years, FIG experienced a significant growth. However, after going public in 2007 – just a few months before it would suffer significant losses in the 2008 global financial crisis. And due to Brazil’s failing market in 2015, the company closed its hedge fund.
The decision to close the hedge fund was fuelled by the huge losses the company suffered.During the 2008 global financial distress, Fortress Investment Group was pushed toward bankruptcy. For this reason, the company could not help build the 2010 Olympic athletes village in Vancouver British Columbia. Since it was unable financial assistance, Vancouver city was forced to pay almost $500 million to finish the project on time for the Olympics. The city borrowed money and completed the project in the wake of the financial crisis. Upon completion, the village went into the Holdings of FIG in 2010.Despite the challenges faced by the Fortress Investment Group in the past few years, it has since experienced positive growth.
For instance, in 2014, it was recognized as the hedge fund manager of the year.Recently, the Associated Grocers of Florida Distribution Center in Pompeo Beach was acquired by Fortress Investment Group. This year the company also acquired SuperValu distribution center in the same location. The purchase was part of the 483 million USD national portfolio deal.In April, it was announced that the Grocers Distribution Company is set to sell eight of its facilities in Illinois, California, Pennsylvania, Wisconsin and Pompeo Beach. The one located in California was traded for 121 million USD. It was also part of a 20-year sale agreement with SuperValu. There is also a 5-year renewal option.
Acquisition of Fortress Investment
A Japanese technological company acquired FIG for $3.3 billion. The move to buy one of the largest global investment giants is just the latest in a string of United States finance and real estate moves for the Asian conglomerate. A few months after the acquisition, Softbank Vision Fund invested 450 million dollars in real estate company in New York City. The company referred to the investment by Softbank as the largest real estate in America’s history.