Market Overview

NorthStar Realty Europe Completes the Sale of the Trianon Tower in Frankfurt, Germany for €670 Million


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

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