Abu Dhabi Fund Buys Stake in 330 Madison Ave.

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Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, plans to buy out Vornado Realty Trust’s 25% stake at 330 Madison Ave.

(Bloomberg) — Abu Dhabi Investment Authority, one of the world’s largest sovereign wealth funds, plans to buy out Vornado Realty Trust’s 25% stake in the midtown Manhattan office tower at 330 Madison Ave., according to a person familiar with the matter.

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The deal would give the Abu Dhabi fund, already the building’s majority holder, full ownership. Vornado on Monday said it agreed to sell its interest in the property as part of a “buy/sell process initiated by its 75% partner at a $900 million valuation.”

The New York 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.

Read more: Abu Dhabi GDP Growth to Average 2.5% Through 2022, S&P Says

The 846,000-square-foot (79,000-square-meter) tower is in a prime location, just a block from Grand Central Terminal and One Vanderbilt, the shiny new skyscraper SL Green Realty Corp. is building. Tenants include Guggenheim Partners, HSBC, Wells Fargo & Co. and Jones Lang LaSalle Inc., according to Vornado’s website.

A Vornado spokeswoman declined to comment beyond the company’s statement.

ADIA, as the Abu Dhabi fund is known, allocates 5% to 10% of its massive portfolio to real estate, according to its annual report.

The fund doesn’t divulge its assets under management, but it’s estimated to have about $696 billion. That makes it the third-largest in the world, according to data from the Sovereign Wealth Fund Institute.

To contact the reporters on this story: Mahmoud Habboush in Abu Dhabi at [email protected]; Lily Katz in New York at [email protected]

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