By Michael Calia
NorthStar Realty Finance Corp. said Tuesday that it had agreed
to buy, along with investment firm Cale Street Partners, a
portfolio of 11 European office properties worth EUR1.1 billion
($1.34 billion).
The Class A properties, which total 2 million square feet, are
located in European markets including London, Paris and
Brussels.
Among the properties considered "trophies" in the portfolio are
the Condor House and Portman Square House in London, and
Issy-les-Moulineaux in Paris, NorthStar Realty said.
NorthStar Realty said the properties' credit tenants include
firms such as BNP Paribas, Cushman & Wakefield, AIG, Chartis
Europe, Invesco, Barclays, Deloitte, and Ernst & Young, which
all represent about 66% of in-place rents.
About 50% of the portfolio, by rent, is derived from properties
in Paris and London, the company said.
NorthStar Realty said the properties are an average of eight
years old and are 93% leased.
Cale Street Partners will provide some financing for the deal,
according to the company.
NorthStar Realty owns an array of commercial real estate, from
retail to health care spaces. It has increased its emphasis on
hospitality, and it closed a $1.1 billion deal for a hotel
portfolio last month.
Write to Michael Calia at michael.calia@wsj.com
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