NorthStar Realty Finance to Buy European Properties

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 [e-mail]

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