The wealth fund of Singapore has formed a joint venture to acquire another landmark commercial property. The acquisitive fund and major shareholder in UBS is now one of the preeminent owners and operators of prime real estate in the world.
GIC, Singapore’s sovereign wealth fund, and Paramount Group, announced today that they have formed a 95 percent/5 percent joint venture which has acquired 60 Wall Street for $1.04 billion, or approximately $640 per square foot.
In connection with the acquisition, the joint venture completed a $575 million financing of the property.
Deutsche Bank's U.S. Home
60 Wall Street is a 47-story, 1.6 million square foot, LEED Silver, Class-A office tower in Manhattan's financial district.
The property is 100 percent leased to, and serves as the U.S. headquarters for, Deutsche Bank. Prior to the acquisition, Paramount managed and owned approximately 5 percent of the property through its ownership in certain private equity funds.
Subsequent to the acquisition, Paramount will maintain its 5 percent ownership interest and continue to serve as the property’s manager.
«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,» said Adam Gallistel, GIC's head of the Americas.
Paying The Rent
The main tenant Deutsche Bank recently reached a U.S. settlement over claims from how the bank issued and underwrote residential mortgage-backed securities in the run-up to the financial crisis.
Under the terms of the settlement agreement, Deutsche Bank agreed to pay a penalty of $3.1 billion and to provide $4.1 billion in consumer relief in the United States.
