NorthStar Realty To Spin Off European Real Estate Business - Quick Facts

(RTTNews) - NorthStar Realty Finance Corp. (NRF) said its Board of Directors unanimously approved a plan to spin off its European real estate business into a separate publicly-traded REIT, NorthStar Realty Europe Corp. The proposed spin-off is expected to be completed in the second half of 2015.

NorthStar Realty Europe is expected to be listed on the New York Stock Exchange and the company is evaluating a dual-listing in Europe. It will be managed by NorthStar Asset Management Group Inc. (NSAM) following a management agreement substantially consistent with NorthStar Realty's existing management agreement with NSAM.

NorthStar Realty currently owns or has under contract approximately $2 billion of European commercial real estate properties that will be contributed to NorthStar Realty Europe as part of the proposed spin-off.

The portfolio is located primarily in the U.K., France and Germany and is well-positioned to capitalize on improving European macroeconomic trends and property fundamentals. NorthStar Realty will continue to be a leading investor in diversified commercial real estate assets with about 80 percent of its assets in owned real estate post spin-off.

The company expects that the proposed spin-off will be treated for tax purposes as a distribution to NorthStar Realty common stockholders equal to the fair market value of the distributed NorthStar Realty Europe shares.