The Real Deal New York

GIC closes on 95% stake in 60 Wall in $1.1B deal

Singaporean fund scored $575M loan to buy majority of Deutsche's HQ
By Mark Maurer and Gabrielle Paluch | January 24, 2017 03:50PM

60 Wall Street and GIC’s Lim Chow Kiat (Credit: Paramount Group)

UPDATED, 10:14 a.m., Jan. 25: Singaporean sovereign wealth fund GIC closed Tuesday on the purchase of a 95 percent stake in the 50-story office tower at 60 Wall Street from Paramount Group and Morgan Stanley, sources told The Real Deal.

The deal, which values the Deutsche Bank headquarters at $1.1 billion, marks 2017’s first sale involving a billion-dollar trophy office tower in the city.

The price of the majority stake was $1.04 billion. As a result of the deal, Paramount will retain a 5 percent stake and Morgan Stanley was bought out, Paramount confirmed.

Aareal Capital provided a $575 million acquisition loan, Commercial Mortgage Alert reported. The previous loan on the property was a $925 million mortgage that Deutsche Bank TRData LogoTINY provided for Paramount and Morgan Stanley in 2007, property records show.

GIC, which owns a piece of the Time Warner Center, entered contract in November.

HFF’s Andrew Scandalios, who brokered the deal, declined to comment. Representatives for Morgan Stanley and GIC did not immediately respond to requests for comment.

Deutsche Bank leases the 1.6 million-square-foot property as part of a 2007 sale-leaseback deal with Paramount and Morgan Stanley. There are about six years remaining on the bank’s lease. The 50-story tower was built in 1988 for JPMorgan and sold in 2001 for $610 million as part of the bank’s merger with Chase Manhattan.

There are several trophy buildings on the market at the moment – either a partial or full stake. Those include One Worldwide Plaza, 245 Park Avenue and a stake in Brookfield Place.