Eurocastle Investment has signed a definitive agreement with the Whitehall Street Real Estate Funds to sell a portfolio of 78 properties for 325 mln. The sale price exceeds the carrying value by approximately 9% and will result in a realised gain of approximately EUR 26 mln, Eurocastle said in a statement. The properties provide a total lettable area of 254,000 m[sup]2[/sup].
Eurocastle Investment has signed a definitive agreement with the Whitehall Street Real Estate Funds to sell a portfolio of 78 properties for 325 mln. The sale price exceeds the carrying value by approximately 9% and will result in a realised gain of approximately EUR 26 mln, Eurocastle said in a statement. The properties provide a total lettable area of 254,000 m2.
'This transaction is consistent with our previously disclosed intent to dispose of non-core assets and will further enhance Eurocastle's ability to focus its strategy on high quality office properties in the major real estate markets in Germany,' commented Bruce Snider, managing director of Eurocastle. 'The current market conditions presented an opportune time to divest these properties and realise the success of our leasing activity.' The completion of the transaction, subject to customary closing conditions, is expected to occur in the second and third quarters of 2007.
Eurocastle Investment is a euro-denominated Guernsey closed-end investment company that invests in and manages a portfolio consisting primarily of German commercial real estate assets. The company is externally managed by Fortress Investment Group and is traded on Euronext in Amsterdam. The Whitehall Street Real Estate Funds are managed by Goldman Sachs.
