SL Green's Park Ave tower stake drew interest from several investors -source (updated)
28/06/2023 22:11
(Adds comments and details in paragraphs 3-5, byline)
By Matt Tracy
June 28 (Reuters) - SL Green Realty Corp SLG.N drew
interest from several investors, including from the Middle East
and Asia, for its 245 Park Ave office tower in Manhattan before
striking a deal with Japanese real estate developer Mori Trust,
a source familiar with the matter said.
As part of the deal, which assigns the property a gross
value of $2 billion, SL Green is selling Mori $500 million in
mezzanine debt, the source said. Mori paid cash for its nearly
50% stake, the source said.
SL Green has leased over 86,000 square feet of space in
the last 30 days, said the source. Demand has increased for
Grand Central and other pockets of New York near commuter hubs,
as many finance companies have shifted to hybrid work models,
the source added.
The $2 billion valuation is a small premium to the $1.96
billion SL Green paid when it bought the property from HNA Group
in September 2022, the source said.
Mori could not be reached for comment.
(Reporting by Matt Tracy; editing by Megan Davies and Richard
Chang)
((Matt.Tracy@thomsonreuters.com;))