(Reuters) - Time Warner Inc will relocate its Manhattan corporate headquarters to the Hudson Yards development from Columbus Circle in a move to bring all its business units from HBO to CNN under one roof and save money.
The media conglomerate said on Thursday it sold the space it owns in the Time Warner Center at Columbus Circle for $1.3 billion to real estate company Related Companies, an entity owned by the Abu Dhabi Investment Authority (ADIA) and fund management company GIC.
Time Warner will lease the office space at Columbus Circle until early 2019. Additionally, the media company made an undisclosed financial commitment to Related Companies and Oxford Properties Group, the developers behind the Hudson Yards, to relocate all of its divisions to the west side of Manhattan.
Time Warner currently owns or leases space in seven buildings.
Time Warner Chief Executive Jeff Bewkes said in a statement the move is to bring all of the company’s employees together to foster more collaboration and to reallocate substantial savings to its business.
It moved to Columbus Circle - a mix of office space, a shopping mall, condominiums, and the Mandarin Oriental Hotel - in 2004.
Reporting by Jennifer Saba in New York; Editing by Andrew Hay, Bernard Orr