Deals and IPOs

American Realty in talks to buy NorthStar Realty: Sources

NorthStar Realty Finance website
Source: NorthStar Realty Finance

American Realty Capital Properties is in talks to buy NorthStar Realty Finance, according to people familiar with the matter, in a deal that would combine a major property owner with a real estate financing company.

The discussions between the two real estate investment trusts are preliminary, and there is no guarantee a deal would materialize, the people said on Monday, requesting anonymity because the matter is not public.

New York-based American Realty, which has a market capitalization of nearly $10 billion, has been acquisitive in recent years and bought Cole Real Estate Investments Inc last year.

NorthStar, which has a market value of roughly $5.8 billion, is a loan originator and manager of commercial real estate debt and is structured as a REIT.

A spokesman for American Realty declined to comment on the deal talks, which was earlier reported by the Financial Times. NorthStar could not be immediately reached for comment.