Korea teams with Invesco to buy NY office

The sovereign wealth fund, through a joint venture with Invesco, has purchased the Helmsley Building in New York. The 1.4 million-square-foot landmark office tower was sold by Goldman Sachs.

The National Pension Service of Korea (NPS), through a joint venture with Invesco Real Estate, has acquired in the Helmsley Building, a landmark office building in Manhattan, from the Goldman Sachs Group.

According to a report from Dow Jones, the South Korean sovereign wealth fund is co-investing in the 1.4 million square-foot building with Invesco Real Estate, which is taking a 51 percent stake in the property on behalf of its Invesco Core Real Estate Fund. NPS will own the remaining 49 percent stake. Both Invesco and the sovereign wealth fund declined to disclose how much they paid for the building.

Goldman acquiring the 34-story office, located at 230 Park Avenue, in 2007 for roughly $1 billion. Monday Properties, which has managed the property since 1998, will continue to manage the building.

Since NPS started to actively increase its ownership in overseas properties in 2009, it has acquired nine Class A offices and retail assets in major global cities. Its investments include Sony Center in Berlin, HSBC's European headquarters in London's Canary Wharf and O'Parinor shopping mall near Paris. The sovereign wealth fund's assets in overseas property markets account for just 1.3 percent of its total assets, which is substantially lower than the eight percent to 10 percent ratio of many other major institutional investors.