NorthStar invested $353m in real estate secondaries in Q2

One of the biggest players in the real estate secondaries market continues to buy stakes.

NorthStar Realty Finance, the New York-based commercial real estate firm, invested $353 million in purchasing real estate fund interests during the second quarter of this year, according to the firm’s second quarter earnings report.

Publicly-listed NorthStar acquired limited partnership interests in three real estate private equity funds, according to the report. The stakes had a net asset value (NAV) of $368 million, meaning NorthStar paid roughly 96 percent of NAV for the interests.

The firm expects to earn an initial weighted average current yield of about 15 percent on equity in these investments, according to the report.

“We are pleased with our solid results for the second quarter, which reflect our commitment to executing our operating strategy as we continue to build a portfolio of diversified commercial real estate assets that we expect to generate long-term, durable cash flows,” David Hamamoto, chairman and chief executive, said in the statement.

About 86 percent of NorthStar’s $20 billion of total assets as of 30 June were comprised of direct and indirect ownership interests in real estate. The firm also acquired acquired approximately $1.9 billion of mainly pan-European office properties during the period.

Secondaries Investor previously reported NorthStar had purchased real estate secondaries interests from a $1 billion pool of stakes Harvard Management Company had put on the market earlier this year.