The Abu Dhabi Investment Authority and Singapore’s GIC, along with real estate investment and development firm Related Companies, are said to be acquiring Time Warner’s New York headquarters in the Time Warner Center. Although terms for the pending sale have not been disclosed, the Financial Times has reported that the deal totals $1.3 billion, with each sovereign wealth fund kicking in approximately $300 million and Related contributing a portion of the equity. All parties involved declined to comment to PERE.
Time Warner’s 1.1 million-square-foot office space is located within the Time Warner Center, a 2.8 million-square-foot mixed-use property. The complex, developed by Related and Apollo Real Estate Advisors (AREA Property Partners) in 2004, is home to Related and AREA’s New York offices, as well as Jazz at Lincoln Center, the Mandarin Oriental New York and the Shops at Columbus Circle. Time Warner is expected to relocate its headquarters to a tower at Related’s Hudson Yards development project on Manhattan’s West Side.
The deal is the latest in a recent stream of foreign capital investing in New York trophy office buildings. Last month, Chinese conglomerate Fosun International purchased the landmark One Chase Manhattan Plaza from JPMorgan Chase for $725 million. Also in October, Ivanhoé Cambridge, the real estate subsidiary of the Caisse de dépôt et placement du Québec, purchased a 51 percent interest in 1211 Avenue of the Americas for $850 million. Meanwhile, the world’s largest sovereign wealth fund, Norway’s Government Pension Fund Global, acquired a 45 percent stake in Times Square Tower from Boston Properties for $684 million in September.