NorthStar Realty Europe Corp, a European-focused predominately office REIT, partnered with China Resources Land Limited, a leading property developer in China listed on the Hong Kong Stock Exchange with an approximate c. €17 bn equity market capitalization, to acquire 20 Gresham Street, a trophy office building located in the City of London, for approximately €348m from AXA Investment Managers. The acquisition represents CRL's first real estate investment in Europe.
NorthStar Realty Europe invested ca. €30.1m by way of preferred equity.
Property Highlights:
- Constructed in 2008 with 242,807 ft² of highly specified office space over seven floors;
- Located in London's largest business district in close proximity to St. Paul's Cathedral and Bank of England;
- Currently fully leased to blue chip financial services firms including ICBC Standard Bank Plc., TSB Bank Plc., Sacker & Partners LLP, and TLT LLP; and
- Average current rents significantly below market rents for similar quality office buildings located in the vicinity of 20 Gresham Street
Mahbod Nia, NorthStar Realty Europe's Chief Executive Officer, commented: "We are delighted to partner with China Resources Land, a leading and highly respected property developer in China with a strong track record of investing in and developing high-quality real estate, on its initial investment in Europe. NRE's expertise in the London and broader European real estate market makes us an excellent partner for CRL and we look forward to continuing to develop this important relationship as CRL looks to expand its footprint outside of China. 20 Gresham Street is a highly desirable building with a prime location in London and we feel confident there is significant opportunity to add value and drive strong returns through a number of pro-active initiatives."
