Deals

Abu Dhabi scores NYC’s Chrysler Building

Abu Dhabi Investment Company has reportedly bought a 90 percent stake in Manhattan’s iconic Art Deco building from an arm of Prudential Real Estate Investors. The building is believed to have sold for close to $900m.

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New York’s landmark Chrysler Building has reportedly been sold to Abu Dhabi Investment Company in a deal worth $888 million (€564 million).

The TMW Property Funds, managed by Prudential Real Estate Investors, sold its stake in the 77-story tower yesterday, Prudential spokeswoman Theresa Miller told PERE. Media reports have suggested the 90 percent stake was purchased for $888 million. Miller declined to disclose any further details or confirm the buyers other than to say it was sold “on behalf of the firm's German investors.” The buyers are widely reported to be the Abu Dhabi Investment Company (ADIC).

The stake was first acquired by TMW Real Estate, the US arm of Germany-based real estate investment group, TMW Immobilien, in 2001 for $300 million. TMW was acquired by Prudential in 2002, becoming one of PREI’s property funds.

Tishman Speyer Properties is expected to remain the manager of the iconic Art Deco building, located on East 42nd Street and Lexington Avenue near New York City’s Grand Central Station. A spokeswoman for Tishman declined to comment. Abu Dhabi Investment Company was unavailable for comment.

In May, another New York landmark property, the GM Building, was sold to a consortium including Boston Properties, Goldman Sachs and investors from Qatar and Kuwait. Developer Harry Macklowe agreed to sell the property, along with three other Manhattan skyscrapers, for $3.95 billion. The purchase of the four properties, which was funded by $1.47 billion in cash and $2.47 billion of fixed-rate debt, enabled Macklowe Properties to pay off $1.4 billion of debt it owed Fortress Investment Group. Macklowe took on the loan from Fortress last year before the credit crunch hit in order to help finance the acquisition of seven New York properties from Equity Office Properties Trust.

Last year, Prudential sold two other New York buildings including 666 Fifth Avenue, a 1.5 million square foot skyscraper for $1.8 billion, as well as the elliptical Lipstick Building, designed by Philip Johnson, for about $649 million.