"Digital Colony has all the attributes of the most successful managers we have partnered with: a top management team with a track record of success, a differentiated strategy, and exposure to a large, growing opportunity set," Russell Valdez, chief investment officer of Wafra, said in a company statement. "At Wafra, we have a track record of backing managers that are leaders in their respective sectors, and Digital Colony's distinction in digital infrastructure is best-in-class."

Colony Capital manages $50 billion in real assets on behalf of its shareholders and limited partners, Included in that figure is more than $20 billion in digital real estate investments made through Digital Colony.

Wafra and its affiliates manage assets and commitments of approximately $25 billion. 

Last month, Colony Capital and Vantage Data Centers led an investment group in a multi-billion-dollar partnership aimed at expanding Vantage's data centers in North American and Europe. The Colony-led group will invest $1.2 billion in Vantage's portfolio, including 12 stabilized North American data centers, which span more than 1.4 million gross square feet.

In January, Wafra Capital Partners and Nightingale Properties secured a $145 million fixed-rate loan to acquire 111 Wall St. in Downtown Manhattan. The 1968 property, formerly known as the Citibank Building, stands 24 stories tall and spans 1.1 million square feet.

In its investment deal with Digital Colony, Wafra was advised by BofA Securities as its exclusive financial advisor and by Fried Frank as legal advisor. Colony Capital was advised by Sullivan & Cromwell and Morgan Lewis as legal advisors.