NorthStar Realty Europe Completes the Sale of the Trianon Tower in Frankfurt, Germany for €670 Million
December 12 2018 - 4:30PM
Business Wire
NorthStar Realty Europe Corp. (NYSE: NRE) ("NorthStar Realty
Europe" or "NRE") announced today that it has completed the sale of
the Trianon Tower in Frankfurt, Germany, for €670 million, or
approximately $758 million based on the exchange rate as of
December 12, 2018, realizing an approximate 20% IRR. The
transaction releases approximately $360 million of net equity after
repayment of financing and transaction costs and a $6 million
retained interest in the form of preferred equity certificates with
a 7% yield.
The Trianon Tower, with its distinctive triangular shape, is one
of the most iconic office towers in Germany and is centrally
located in Frankfurt CBD. It is the sixth tallest office building
in Germany at 186 metres with a total rentable area of 68,000 sqm
over 46 floors and is NRE’s largest asset.
Since acquiring the asset in July 2015, NRE has completed an
extensive refurbishment program including elevator, lobby and
canteen renovation, full upgrade to latest fire, life & safety
standards as well as a rebranding focused on highlighting the
building's credentials as a dominant landmark in the Frankfurt CBD.
NRE subsequently leased seven vacant floors and secured lease
extensions with Deutsche Bundesbank, the second-largest tenant, and
Franklin Templeton, the third-largest tenant, significantly
enhancing the value of the asset.
Mahbod Nia, NorthStar Realty Europe's Chief Executive Officer
and President, commented: “Having completed a number
of complex, value enhancing asset management initiatives
during our ownership period we are pleased to announce the sale of
Trianon. The sale crystalizes an approximate 20% IRR and further
enhances NRE’s track record of consistently creating value for
stockholders since inception.”
Property highlights
- 68,503 sqm office tower in Frankfurt
CBD, Germany
- Constructed in 1993 and was designed by
AS & P Albert Speer & Partner, Novotny Maehner Associates,
HPP Hentrich-Pteschnigg & Partner
- ~90% of rent derived from long-term
leases to Deutsche Bundesbank (German central bank) and
Dekabank
- LEED Platinum certified in September
2018
- Recently undergone significant
refurbishment program
About NorthStar Realty Europe
NorthStar Realty Europe Corp. (NYSE: NRE) is a European-focused
commercial real estate company with predominantly high quality
office properties in Germany, the United Kingdom and France,
organized as a REIT and managed by an affiliate of Colony
NorthStar, Inc. (NYSE: CLNS), a leading global real estate and
investment management firm. For more information about NorthStar
Realty Europe Corp., please visit http://www.nrecorp.com
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