Colony Capital Inc.'s offer to buy certain of Abraaj Group Ltd.'s funds management business is facing investor resistance and concerns over deal structure, Reuters reported July 5, citing four unnamed sources.

The sources said, according to the news outlet, that the latest roadblock could prompt U.S.-based real estate investment trust Colony Capital to take another look at its original offer for Dubai-based private equity firm Abraaj's Latin America, Sub Saharan Africa, North Africa and Turkey funds management businesses.

Other problems that have reportedly surfaced since the deal was announced in late June include Abraaj failing to provide information required by Colony, the agreement's tight time frame and the full approval of limited partners.

The acquisition will be up for approval by a Cayman Islands court July 11, according to Reuters.

Colony Capital did not offer a comment on the matter, while Deloitte and PwC, Abraaj's joint provisional liquidators, said negotiations are still ongoing, the news agency noted.