NEW YORK—NorthStar Realty Finance has reachedan agreement to acquire a $1.34 billion (€1.1B)European office portfolio in cooperation with Cale StreetPartners. The portfolio is comprised of 11class A office properties located across gateway cities inseven of Europe's top markets: London, UK; Paris, France;Hamburg, Germany; Milan, Italy; Brussels, Belgium; Amsterdam andRotterdam, Netherlands; and Gothenburg,Sweden. The group totals 186,299 square meters (about 2million square feet) with a well-diversified mix of market leadingtenants.

"We are extremely pleased to announce this differentiated andrare portfolio acquisition,” said NorthStar's chairman and CEO,David Hamamoto. “The size and execution complexityof this transaction, spanning seven countries and three currencies,demonstrates the strength of our investment platform. While ourbase case assumption is that we retain these high quality assets aswe expect rents to grow and cap rates to compress in the comingyears, we believe the optionality of this portfolio is veryvaluable, both from an asset level standpoint and from a corporatestandpoint given the quality and scale of the portfolio."

Cale Street Partners, a real estate finance and investment firmbacked by flexible sovereign wealth capital, will provide certainfinancing for the acquisition of the portfolio and assisted insourcing the transaction. NorthStar is a New-York based investmentfirm organized as a REIT.