GIC, Paramount Group Buy Wall Street Office Tower for $1B

NEW YORK CITY — A joint venture between GIC and Paramount Group has acquired a 1.6 million-square-foot office tower in New York City for $1 billion. The 47-story tower is located at 60 Wall St. in the Financial District of downtown Manhattan.

The property is fully leased. It serves as the U.S. headquarters of Deutsche Bank.

GIC, a sovereign wealth fund based in Singapore, has a 95 percent stake in the joint venture, while Paramount Group holds the remaining 5 percent. Paramount managed and owned about 5 percent of the property through its ownership in certain private equity funds prior to the acquisition.

The joint venture also received $575 million in financing for the property in relation to the acquisition.

“This investment reflects our long-term confidence in downtown Manhattan, which is benefitting from over $30 billion of recent public and private investments in infrastructure and new construction,” says Adam Gallistel, GIC’s regional head of Americas. “We believe 60 Wall St. is one of the top buildings in downtown and is poised to benefit from the ongoing downtown renaissance.”

Deutsche Bank announced plans to renovate the office space in late 2016. It purchased the asset from J.P. Morgan & Co. in 2001 before selling to Paramount Group in 2007 and leasing back the space. Deutsche’s lease runs through 2022.

GIC is a global investment firm with more than $100 billion in assets under management. It was established in 1981 to secure the financial future of Singapore, where it manages the country’s foreign reserves.

New York-based Paramount Group (NYSE: PGRE) is a fully integrated REIT that owns, operates, manages, acquires and redevelops Class A office properties in select central business district submarkets of New York City, Washington, D.C., and San Francisco. The company’s stock price closed at $16.92 on Tuesday, Jan. 24, up from $16.90 one year ago.

— Nellie Day

Content Partners
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‣ Bohler
‣ Lee & Associates
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