Business

GIC buys Deutsche Bank's Wall Street HQ

Singapore sovereign wealth fund GIC has acquired a 95 per cent stake in a 47-storey trophy office building on New York's famous Wall Street from Paramount Group.

It has formed a joint venture with Paramount to buy 60 Wall Street, in a deal valuing the 1.6 million sq ft skyscraper at US$1.04 billion (S$1.47 billion), or about US$640 a sq ft.

This means GIC's 95 per cent stake could be worth US$988 million although the exact sum it invested was not disclosed.
Paramount, a New York-based real estate investment trust, has the other 5 per cent, the firms said in a joint statement yesterday.

The office property in lower Manhattan is fully leased to financial giant Deutsche Bank, serving as its US headquarters.

"This investment reflects our long-term confidence in downtown Manhattan which is benefiting from over US$30 billion of recent public and private investments in infrastructure and new construction," said GIC's regional head of Americas Adam Gallistel.

Paramount will continue to manage the building.

Mr Albert Behler, chairman, chief executive 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."

GIC said the office tower is one of the top buildings in downtown Manhattan - "poised to benefit from the ongoing downtown renaissance".

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