NorthStar Said to Buy Frankfurt’s Trianon Tower From U.S. Owners

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NorthStar Realty Finance Corp. is buying the Trianon office tower, one of Frankfurt’s tallest skyscrapers, from Madison International Realty LLC and a fund managed by Morgan Stanley, two people with knowledge of the matter said.

NorthStar announced the 540 million-euro ($611 million) transaction late on Monday, without naming the building or the sellers. The people familiar with the deal asked not to be identified because the information is private.

Representatives at Morgan Stanley and Madison declined to comment. No one at NorthStar could be reached for comment.

A Morgan Stanley fund bought the Trianon in 2007 for 620 million euros, according to reports at the time. In 2012, Madison Realty bought a 57 percent stake, Madison said.

The building in Frankfurt’s financial district has tenants including Deka Gruppe, Linklaters LLP and the Bundesbank.

NorthStar said it expects to earn an initial current yield of about 8 percent and that the acquisition lifts the value of its European property portfolio to about $2.6 billion euros, according to the statement.

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