New York-listed NorthStar Asset Management (NSAM) is acquiring an 85% interest in The Townsend Group, a US-based global real estate investment management business.
New York-listed NorthStar Asset Management (NSAM) is acquiring an 85% interest in The Townsend Group, a US-based global real estate investment management business.
NSAM is paying $380 mln (€332 mln), predominantly from funds affiliated with private equity firm GTCR. NSAM has obtained a commitment for $500 mln of financing which will be used to fund the transaction and for general corporate purposes.
The transaction is expected to close in early 2016.
Founded in 1983, Townsend manages or advises on about $180 bn of assets for an institutional investor base. The company has offices in Cleveland, San Francisco, London and Hong Kong. Townsend's management team will own the remainder of the business and will continue to direct day-to-day operations.
David Hamamoto, executive chairman of NSAM, said the acquisition of the Townsend platform will expand and accelerate NorthStar's asset management capabilities, both in the US and internationally.
Morgan Stanley & Co acted as sole financial advisor to NSAM on this transaction and Morgan Stanley Senior Funding was the lead provider of the $500 mln debt financing commitment to NSAM.
The NorthStar Group has been an active investor in the European real estate market in recent years. In July 2015 its REIT, NorthStar Realty Finance, finalised the acquisition of the Trianon office tower in Frankfurt for €540 mln, reflecting a yield of 8%.