- Vornado Realty Trust (NYSE:VNO) is acquiring Canada Pension Plan Investment Board’s 45% interest in Manhattan office building One Park Avenue, to take its ownership interest to 100%.
- The purchase price values the property at $875M.
- The consideration to Canada Pension is about $158M in cash plus Vornado is assuming Canada Pension's share of existing debt.
- The property has a $525M debt, which bears interest at a rate of LIBOR plus 1.11% (currently 1.20%) and matures in March 2026.
- The company said the building is 67% leased to New York University through May 2050.
- Vornado originally acquired an interest in the property in March 2011 at a $394M valuation and recapitalized the property with Canada Pension in June 2014 at a $560M million.
- The transaction is expected to close in Q3, subject to conditions.
- Source: Press Release