China Investment Corp. buys $700M stake in 1 NY Plaza

Sovereign wealth fund follows Qatar’s lead, invests in Brookfield office tower

1 New York Plaza in the Financial District
1 New York Plaza in the Financial District

Chinese sovereign wealth fund China Investment Corp. picked up a 49 percent stake in Brookfield Property Partners’ office tower at 1 New York Plaza in the Financial District.

In the latest instance of foreign investment driving the city’s commercial real estate market, CIC paid around $700 million for its minority interest in the 50-story, 2.6 million-square-foot tower, valuing it at roughly $1.4 billion.

Brookfield will maintain a controlling stake in the office building, according to Crain’s. The Toronto-based company announced that it had sold the 49 percent stake to an unnamed buyer in its quarterly earnings call earlier this month.

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Brookfield will also continue to handle leasing and management at the building, whose office tenants include law firm Fried Frank and investment bank Morgan Stanley.

The landlord refinanced 1 New York Plaza, also known as 1 Water Street, with a $750 million loan from Wells Fargo earlier this year.

CIC, which has more than $700 billion under management, is the second sovereign wealth fund in recent months to invest in a sizable minority stake in one of Brookfield’s Manhattan assets.

Last fall, the Qatar Investment Authority acquired a 44 percent stake in the five-building Manhattan West development, thus valuing the megaproject at $8.6 billion. [Crain’s]Rey Mashayekhi

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