Singapore’s GIC and Paramount form joint venture and acquire 60 Wall Street for $1.04 billion in downtown Manhattan
GIC, Singapore’s sovereign wealth fund, and Paramount Group, Inc. (NYSE: PGRE) (“Paramount”) announced that they have formed a 95%/5% joint venture which has acquired 60 Wall Street for $1.04 billion, or approximately $640 per square foot. In connection with the acquisition, the joint venture completed a $575 million financing of the property.
60 Wall Street is a 47-storey, 1.6 million square foot, LEED Silver, Class A office tower in the Financial District of Downtown Manhattan. The property is 100% leased to, and serves as the U.S. Headquarters of, Deutsche Bank. Prior to the acquisition, Paramount managed and owned approximately 5% of the property through its ownership in certain private equity funds. Subsequent to the acquisition, Paramount will maintain its 5% ownership interest and continue to serve as the property’s manager.
Adam Gallistel, Regional Head of Americas, GIC, said, “This investment reflects our long-term confidence in Downtown Manhattan which is benefitting from over $30B of recent public and private investments in infrastructure and new construction. We believe 60 Wall Street is one of the top buildings in Downtown and is poised to benefit from the ongoing downtown renaissance. We are also very happy to expand our partnership with Paramount, which is among the leading owners, operators and managers of Class A office properties in the U.S.”
Albert Behler, Chairman, Chief Executive Officer and President of Paramount, said, “We are thrilled to enter into this new joint venture with GIC, one of the preeminent owners and operators of real estate in the world. We believe GIC’s commitment to 60 Wall Street is reflective of its confidence in Paramount’s management team and the strength of the New York City real estate market.”