NEW YORK--(BUSINESS WIRE)--SL Green Realty Corp (NYSE:SLG), New York City’s largest commercial property owner and an S&P 500 company, today announced an agreement to acquire from Canada Pension Plan Investment Board (CPPIB) its 45% indirect stake in 600 Lexington Avenue, a 36-story, 303,500 square foot Midtown Manhattan office building, which will give SL Green complete ownership of the asset. The transaction implies consideration for the consolidated interests of $284 million, or $936 per square foot, and is expected to close before year-end, subject to customary closing conditions.
SL Green and CPPIB acquired the property in May 2010 and completed capital improvements to reposition it as one of the submarket’s most desirable locations. With SL Green responsible for management and leasing, occupancy has reached 95% as of December 2015.
SL Green Co-Chief Investment Officer, Isaac Zion, commented, “We look forward to joining CPPIB in making future investments after this highly successful endeavor together. 600 Lexington Avenue is one of our premier boutique office assets, located in the heart of Midtown, and is primed for continued superior performance in the marketplace.”
“We are pleased with the performance of 600 Lexington and the value that SL Green has created, as we monetize our position in this asset,” said Peter Ballon, Managing Director, Head of Real Estate Investments Americas, CPPIB. “We look forward to continuing our relationship with SL Green, a valued partner, to pursue new investment opportunities in the New York market.”
About SL Green Realty Corp.
SL Green Realty Corp., an S&P 500 company and New York City's largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of September 30, 2015, SL Green held interests in 121 Manhattan buildings totaling 43.2 million square feet. This included ownership interests in 30.6 million square feet of commercial buildings and debt and preferred equity investments secured by 12.6 million square feet of buildings. In addition to its Manhattan investments, SL Green held ownership interests in 35 suburban buildings totaling 5.3 million square feet in Brooklyn, Long Island, Westchester County, Connecticut and New Jersey.
For more information, please visit: http://slgreen.com/
About Canada Pension Plan Investment Board
Canada Pension Plan Investment Board (CPPIB) is a professional investment management organization that invests the funds not needed by the Canada Pension Plan (CPP) to pay current benefits on behalf of 18 million contributors and beneficiaries. In order to build a diversified portfolio of CPP assets, CPPIB invests in public equities, private equities, real estate, infrastructure and fixed income instruments. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City and São Paulo, CPPIB is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At September 30, 2015, the CPP Fund totalled $272.9 billion. For more information about CPPIB, please visit www.cppib.com.
SLG – A&D
