AXA Investment Managers – Real Assets (AXA IM – Real Assets) has completed the acquisition, as part of a core strategy on behalf of a client, of the entire issued share capital of NorthStar Realty Europe Corp ), a NYSE listed real estate investment trust.
The acquisition was approved at a special meeting of NRE stockholders held on 25 September, 2019 and NRE will be delisted from the NYSE.
Further to AXA IM – Real Assets’ announcement of 4 July 2019, the final consideration for the Acquisition after the settlement of the previously disclosed forward exchange contracts to hedge the non-U.S. dollar portions of the merger consideration represents a price of USD17.01 per NRE share.
Through a single transaction, the Acquisition provides AXA IM – Real Assets with immediate access to a EUR1.1 billion, 122,000 sq m (1.3 million sq ft) portfolio of modern, prime and well located office space in key European cities within Europe’s three core markets of Germany, the United Kingdom and France. The Portfolio also includes two hotels in Berlin which total 334 rooms across 12,000 s qm.
John O’Driscoll, European Head of Transactions at AXA IM – Real Assets, says: “This transaction affords us the rare opportunity to secure a significant portfolio of prime European offices and hotels which we now look forward to integrating into AXA IM – Real Assets’ wider portfolio of core European real estate assets under management. The properties, which are all located in the major cities of Europe’s largest economies of France, the UK and Germany, have high occupancy and produce strong levels of income that are ideally suited to our clients, whilst offering longer term potential for both asset management and further income generation.
“This transaction is also a clear example of our highly flexible 360-degree approach to investing in real estate via debt or equity and through a range of private or public entry points, including complex corporate acquisitions.”