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News Release

Zurich

Colony sells two portfolios for more than CHF 250 million as sale and leaseback appetite grows

JLL Switzerland acts as exclusive advisor to Colony NorthStar in the sale of two net lease student housing portfolios


Colony NorthStar has sold two Swiss net lease portfolios in Glion (Montreux) and in Bluche (Crans-Montana) comprising 20 student accommodation and education properties for more than CHF 250 million (EUR 230 million) through the sale of a corporate vehicle to a Swiss investment foundation.

Georges Asmar, Global Head of Net Lease at Colony NorthStar, said: "This transaction is testimony to the increasing volume in long term sale and leaseback activity across Europe, and the growing interest from European institutional investors. This deal is a perfect example of a successful partnership between the Swiss investment foundation, an investment real estate firm, which benefits from very attractive and secured cash flows from high quality student accommodation and education properties, and Sommet Education, a preeminent, global corporate operator".

JLL estimates that the sale and leaseback activity in Europe reached a 10 year high to almost EUR 18 billion in 2016. Corporate owners are taking advantage of buoyant investment markets, an ever increasing range of funding options and high levels of investor appetite for both generic and alternative assets. This was demonstrated by this transaction.

Asmar continued: "The JLL team in Switzerland with the support of their global capital markets colleagues demonstrated outstanding client focus, a pro-active approach, and experience throughout this process."

The JLL transaction team consisted of Lars Frölich (deal captain) as well as Nils Donner, Gregor Strocka and Jan Eckert.