Ivanhoé Cambridge buys 51 percent of News Corp headquarters
NEW YORK (Reuters) - Ivanhoé Cambridge, the real estate investment arm of Canadian pension fund Caisse de Dépôt et Placement du Québec, on Tuesday said it acquired a 51 percent stake in the Manhattan skyscraper that serves as News Corp's (NWSA.O) headquarters for more than $850 million.
Under the deal, the seller, Beacon Capital Partners LLC, will retain the remaining stake in the 2 million square-foot (187,100 square-meter) building at 1211 Avenue of the Americas, the company said.
The deal values the 45-story skyscraper between 47th and 48th Streets at $1.75 billion, according to a person familiar with the matter. The building is adjacent to Rockefeller Center, an area where the availability rate - the space that is expected to be vacant within the next 12 months - has grown to 12.6 percent in the third quarter from 10.4 percent a year earlier, according to real estate services company CBRE Group Inc (CBG.N).
That is slightly higher than the 12.2 percent third quarter overall midtown Manhattan availability rate.
Eastdil Secured, a unit of Wells Fargo & Co (WFC.N), handled the deal.
Ivanhoé Cambridge was an early mover in acquiring commercial real estate right after the credit crisis. The acquisition brings Ivanhoé Cambridge's investments in Manhattan office and apartment buildings to $3 billion, the company said.
(Reporting by Ilaina Jonas)