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Ivanhoé looks to sell News Corp building for $2bn

The Canadian investor bought the asset through two interest purchases in 2013 and 2016.

Ivanhoé Cambridge has put one of its New York City office buildings up for sale, in the hopes that it could fetch as much as $2 billion, PERE has learned.

Ivanhoé, the real estate arm of pension system Caisse de dépôt et placement du Québec, is marketing 1211 Avenue of the Americas, a 45-floor office building built in 1973 that serves as the headquarters for media company News Corporation.

A spokesman for the investor declined to comment.

Ivanhoé bought the office tower through two transactions, purchasing a 51 percent stake in the building in October 2013 for about $850 million and the remaining 49 percent interest in June 2016 for $973 million, according to public records. Boston-based private equity real estate firm Beacon Capital Partners sold both stakes.

The building is 93 percent occupied, with other tenants including law firm Ropes & Gray and RBC Wealth Management, according to data provider Real Capital Analytics.

Ivanhoé has interests in four other New York City office buildings, according to its website. The firm most recently purchased 85 Broad Street, the headquarters of investment bank Goldman Sachs, in May for about $650 million. Including 1211 Avenue of the Americas, Ivanhoé’s New York City office portfolio comprises 6.7 million square feet.

Ivanhoé managed about C$56 billion ($42 billion; €39.8 billion) in real estate as of December 31.