The world’s largest hedge fund is getting government funding and tax breaks to pay for a new $750 million headquarters in Stamford, Conn. Bloomberg News reported that Bridgewater Associates received a $25 million 10-year loan at 1 percent interest rate, $5 million for job training, $5 million for energy efficient systems and $80 million in tax credits from Connecticut to help fund a 750,000-square-foot two-building complex in Stamford. Additionally, the loan may not have to be repaid if Bridgewater meets certain hiring criteria.
Governor Dannel Malloy called the deal an “extraordinary economic win,” touting an agreement he secured with Bridgewater to retain its current 1,225-person workforce, creates as many as 1,000 more jobs in addition to ensuring the hedge fund remains in the state. Bridgewater is currently based out of Westport. Its new building is slated to open by 2017.
But the incentives Malloy bestowed upon the hedge fund, which paid founder Ray Dalio $3.9 billion in 2011, came under sharp criticism from many local leaders. “This is stealing from the poor and middle class to make a billionaire even richer,” Jonathan Pelto, a former deputy majority leader in Connecticut’s House of Representatives, told Bloomberg. “This isn’t economic development.”
As The Real Deal reported in its August issue, Connecticut landlords have been working hard to boost occupancy in its slumping office market. [Bloomberg] — Adam Fusfeld