Colony NorthStar Inc. has received 12 bids so far for The Townsend Group and the company is nearing a decision on the winning bidder, PERE News reported, citing two people with knowledge of the matter.
Seven or eight suitors have progressed to the second round of bidding, although the talks might not necessarily lead to a sale transaction, according to the report.
Sources told the news outlet that Townsend could trade "in the hundreds of millions of dollars," and Morgan Stanley is said to be working on behalf of Colony NorthStar for the potential sale.
The company launched a review of a possible sale and other strategic alternatives for Townsend in April 2017. Colony NorthStar is believed to be considering a sale of Townsend, as majority ownership of an asset manager does not suit its business strategy as a real estate investment trust, PERE said.
Since 2007, Townsend has reportedly rolled out $3.8 billion in co-investment and secondaries deals with real estate investment managers and operators across the Americas, Europe and Asia.
Morgan Stanley and Colony NorthStar refused to comment on the matter. Townsend was not available to comment, according to the news outlet.