Hong Kong pays $1.2B for stake in 1095 Sixth Ave.

Callahan, Ivanhoe Cambridge bought office property for $2.2B in 2015

TRD New York /
Aug.August 03, 2016 02:00 PM

An investment fund controlled by Hong Kong’s de-facto central bank bought a 49 percent stake in 1095 Sixth Avenue from Ivanhoe Cambridge and Callahan Capital Partners for $1.15 billion, property records show.

The buyer, Real Summit Investment, is a real estate investment subsidiary of the Hong Kong Monetary Authority’s Exchange Fund.

Ivanhoe Cambridge, the real estate investment arm of Quebec’s public pension plan, and Chicago-based fund manager Callahan, bought the 1.2 million-square-foot tower — also known as the Salesforce Tower New York and 3 Bryant Park — for $2.2 billion from the Blackstone Group in January 2015.  The new transaction values the office tower at $2.35 billion. Blackstone TRData LogoTINY recently began marketing the neighboring office building 1065 Sixth Avenue, which could fetch $700 million.

According to its website, the Exchange Fund’s mission is to control the exchange rate of the Hong Kong Dollar. The Hong Kong Dollar’s value is linked to the U.S. Dollar by government policy, and the HKMA has to hold U.S.-Dollar-denominated assets in reserve to maintain the link.

“To diversify risks, we decided to allocate, in a prudent and incremental manner, a small portion of the Exchange Fund to alternative asset class comprising global private equity and overseas real estate,” the HKMA’s deputy chief executive Eddie Yue said in a December speech.

HKMA’s Exchange Fund invested $9.7 billion in real estate and private equity in 2015, according to the Asian Venture Capital Journal.

Representatives for HKMA and Ivanhoe Cambridge did not immediately respond to a request for comment.

Enterprise software firm Salesforce.com is set to be the 41-story building’s anchor office tenant by the close of 2016. The MetLife logo at the top of the tower will be replaced with Salesforce’s.


Related Articles

arrow_forward_ios
16 West 40th Street and KPF president James von Klemperer (Credit: Google Maps)

Architect behind One Vanderbilt snags $5M condominium a few blocks away

Ivanhoe Cambridge buys longtime partner Callahan Capital

SL Green, Ivanhoe to sell 1745 Broadway offices for $633M

Savanna is buying 5 Bryant Park from Blackstone for $640M

A&E in contract to buy Stonehenge Village on UWS

SL Green, Ivanhoe look to sell
1745 Broadway’s office condo for $650M

New study says city exaggerated benefits of 2015 Stuy Town deal

AEW is buying Pearson’s US headquarters
for $385M

arrow_forward_ios