Paramount and GIC snap up $1bn Manhattan trophy

GIC, Singapore’s sovereign wealth fund, and Paramount Group have formed a 95%/5% joint venture  that has acquired 60 Wall Street in New York city for $1.bn (£800m). The purchase price equates to approximately $640 per sq ft. In connection with the acquisition, the joint venture completed a $575m financing of the property. The 47-storey, 1.6m sq ft office tower in the financial district of downtown Manhattan is 100% leased to Deutsche Bank, and is its US headquarters. Prior to the acquisition, Paramount managed and owned around 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 asset manager. Adam Gallistel, regional head of Americas, GIC, said: “This investment reflects our long-term confidence in downtown Manhattan, which is benefitting from more than $30bn of recent public and private investments in infrastructure and new construction.” Albert Behler, chairman, chief executive officer and president of paramount, said: “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.” • To send feedback, e-mail amber.rolt@estatesgazette.com or tweet @amberrolt or @estatesgazette