The deal will give the Abu Dhabi fund, already the building’s majority holder, full ownership.
Wednesday 12, June 2019
(Bloomberg) --Abu Dhabi Investment Authority (ADIA) plans to buy out Vornado Realty Trust’s 25 per cent stake in the midtown Manhattan office tower at 330 Madison Avenue.
On Monday, Vornado announced that it has agreed to sell its interest in the property as part of a buy/sell process initiated by its 75 per cent partner at a $900 million valuation.
The New York-based company anticipates about $100 million of net proceeds after deducting an existing $500 million mortgage and expects the transaction to close in the third quarter.
The 79,000-square-metre tower is in a prime location, just a block from Grand Central Terminal and One Vanderbilt, the shiny new skyscraper SL Green Realty Corporation is building. Tenants include Guggenheim Partners, HSBC as well as Wells Fargo & Co and Jones Lang LaSalle.
ADIA allocates five to 10 per cent of its massive portfolio to real estate. The fund does not divulge its assets under management, but it’s estimated to have about $696 billion, making it the third largest in the world.