Abu Dhabi state fund to purchase 25% Vornado stake in Manhattan office tower

Aerial view of Abu Dhabi. Photo: Pixabay

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.

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.

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.

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.