AXA Investment Managers – Real Assets agreed to acquire 100% stake in real estate investment trust NorthStar Realty Europe Corp., according to a spokesman.
In efforts to boost its assets by €1.1 billion ($1.4 billion) to €83.1 billion, AXA IM – Real Assets has agreed to pay an equivalent of $16.95 a share, based on spot foreign exchange rates and $17.03 based on forward foreign exchange rates, it said in the July 4 statement.
The acquisition, expected to complete in the fourth quarter, is subject to approval by a majority of shareholders.
"The acquisition of NRE is a rare opportunity to secure a significant portfolio of prime modern European offices in a single transaction," said John O'Driscoll, European head of transactions at AXA IM – Real Assets, in a news release. "The properties, which are located in the major cities of Europe's largest economies of France, the U.K. and Germany, have high occupancy and produce strong levels of income that are ideally suited to our clients."
Mahbod Nia, CEO and and president of NorthStar said in a separate news release: "We are pleased that the process has culminated in a transaction that unlocks the significant value we have created for NRE stockholders since inception, realizing an approximate 16% IRR, assuming the estimated per share merger consideration of $17.03."
An AXA spokesman could not be immediately reached to provide additional details.