NorthStar RealEstate Income II Inc., acting through its operating partnership,completed the acquisition of 100% of the membership interests in PEInvestments-T CAM2 LLC.
PE Investments-T CAM2 owns a diversified portfolio oflimited partnership or similar equity interests in real estate private equityfunds from NorthStar Realty Finance LP, an affiliate of a company managed byNorthStar Real Estate Income II's sponsor. The portfolio comprises interests in41 funds managed by 20 institutional-quality sponsors and had an aggregatereported net asset value of approximately $344.3 million as of March 31. Thefunds hold interests in assets that are diversified geographically across 24states and internationally and diversified by investment type, includingmixed-use, multifamily, office and hotel properties.
NorthStar Real Estate Income II acquired the portfolio at92.25% of the NAV as of March 31. The company agreed to pay NorthStar RealtyFinance approximately $273.1 million, with $33.9 million paid at the closing,reflecting $34.3 million of net distributions due to NorthStar Real EstateIncome II as of the closing date, and $204.7 million payable Dec. 31, subjectto adjustments for distributions and contributions following the record date.In addition, NorthStar Real Estate Income II assumed approximately $44.7million of deferred purchase price obligations to third parties from whomNorthStar Realty Finance had originally acquired certain of the fund interestswithin the portfolio. NorthStar Real Estate Income II also agreed to indemnifyNorthStar Realty Finance in connection with its continuing guarantee of thepayment of such deferred obligations.
Although NorthStar Real Estate Income II's maximum futureobligation for capital contributions is approximately $105.9 million, itexpects to fund significantly less over the course of the investment.