National Pension Service of Korea (NPS) has joined global real estate investment firm Hines Interest LP to acquire a 49.5 per cent interest in Manhattan’s adaptive-reuse project One Madison Avenue from US-based REIT SL Green Realty Corp.
NPS and Hines have committed aggregate equity to the project totalling no less than $492.2 million to rejuvenate the building, once one of the world’s tallest towers, according to an announcement.
Meanwhile, SL Green and Hines will co-develop this $2.3-billion project. Upon completion, which is slated for 2024, One Madison Avenue will comprise 1.4 million rentable square feet.
The reimagined building will be built as-of-right, using unused development rights, SL Green said in a statement.
The makeover will see the current 13-storey building demolished down to the existing ninth floor in order to create 17 new column-free floors above. Other works will include revitalising the lobby, modernising core elements, enlarging existing windows, as well as activating retail and below-grade spaces.
Kohn Pedersen Fox Associates will lead the redesign of One Madison Avenue. The firm is also the lead architect at One Vanderbilt, another skyscraper partnership in midtown Manhattan between NPS, SL Green and Hines.
Scott Kim, head of NPS’ real estate investment division, said the new investment in One Madison Avenue will strengthen the already proven partnership with its American partners.
“NPS and Hines have been tremendous partners at our iconic development at One Vanderbilt Avenue. This joint venture partnership serves as an affirmation of New York City’s market resiliency,” said Marc Holliday, chairman and CEO of SL Green.
SL Green claims it is Manhattan’s largest office landlord, focused primarily on acquiring and managing the borough’s commercial properties.
NPS, one of the world’s largest pension funds, recorded assets under management at 743 trillion won ($628 billion) as of January 31, 2020. Its alternative portfolio, including real estate, accounted for about 11.6 per cent of the total assets.