A REIT Spins Off, Public Offers, and Looks to Buy

New York mortgage REIT NorthStar Realty Finance Corp. announced a public offering of 50 million shares of common stock.

The company plans to use the investments to make purchases—specifically, to “fund the cash portion of the purchase price for the acquisition of an approximately $400 million portfolio of manufactured housing communities that it currently has under contract.

Other potential investments, according to the company, may include about $350 million in debt and equity investment “in a strategic joint venture with a New York tri-state area focused real estate owner and asset manager,” and “the acquisition of limited partnership interests in real estate private equity funds,” as well as potential commercial real estate acquisitions and the origination of commercial real estate loans.

The company's press release is available HERE.
And that’s not all:  the offering announcement came a day after NorthStar, which is traded on the NYSE, announced that its board unanimously approved a plan to spin off its asset management business into a separate publicly traded company.

The tax-free distribution will be comprised of common stock in NorthStar Asset Management Corp., a newly formed company expected to be listed on the New York Stock Exchange.

Accompanying the spinoff, the new company will enter into a 20-year management contract to manage NorthStar Realty Finance Corp., as well as the company’s non-traded REIT business and own its broker-dealer platform.

The spinoff press release can be found HERE.

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