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NorthStar Realty Finance Corp.'s board approved a plan to spin off its European real estate business, which includes roughly $2 billion in commercial real estate assets, into a separate publicly traded REIT called NorthStar Realty Europe Corp., the company said Feb. 26.
The new REIT is expected to be listed on the NYSE, and NorthStar is evaluating a dual listing in Europe. NorthStar Realty Europe will be managed by NorthStar Asset Management, pursuant to a management agreement substantially consistent with NorthStar Realty Finance's existing agreement with the manager.
The spinoff is expected to be completed in the second half.
NorthStar Realty Finance owns or has under contract roughly $2 billion of European commercial real estate properties, excluding health care assets, which will be contributed into NorthStar Realty Europe as part of the proposed spinoff.
NorthStar Realty Europe's initial portfolio contains 50 high-quality properties in markets including London, Paris, Amsterdam, Frankfurt, Berlin, Milan, Madrid and Brussels and is "well-positioned to capitalize on improving European...