AXA Investment Managers – Real Assets (AXA IM – Real Assets) has agreed to buy NorthStar Realty Europe, a real estate investment trust company.
The move follows a review of strategic alternatives by NorthStar.
As per the agreed terms of the transaction, NorthStar shareholders will get $17.03 for each share held.
NorthStar CEO and president Mahbod Nia said: “We are pleased that the process has culminated in a transaction that unlocks the significant value we have created for NRE stockholders since inception, realising an approximate 16% IRR assuming the estimated per share merger consideration of $17.03.”
The deal is expected to close in the final quarter of this year.
It already secured the green light of the NorthStar board and is currently pending shareholder approval.
AXA IM – Real Assets European head of transactions John O’Driscoll said: “The acquisition of NRE through this public to private transaction is a rare opportunity to secure a significant portfolio of prime modern offices located in the major cities of Europe’s largest economies of France, the UK and Germany, in a single transaction.
“The properties have high occupancy and produce strong levels of income that are ideally suited to our clients and we look forward to utilising our extensive European network of expert real estate managers to create further value from the portfolio in the future.”
AXA IM – Real Assets has made several acquisitions recently.
Last year, the firm acquired the US real estate debt team from Quadrant Real Estate Advisors.
In 2016, AXA IM – Real Assets purchased Sydney-based real estate investment manager Eureka Funds Management.