QIA BUYS CHUNK OF MANHATTAN PORTFOLIO.
Qatar Investment Authority (QIA) and private realty firm Crown Acquisitions said they were the unnamed investors in a deal with Vornado Realty Trust valued at $5.56 billion that involves a portfolio of prime New York retail properties, according to a Reuters report.
Vornado sold a non-controlling stake in its portfolio of properties along Fifth Avenue and Broadway in Times Square in a transaction that provided the firm cash proceeds of about $1.2 billion, the firm said.
QIA and Crown Acquisitions, which acted as an advisor to the deal, said they acquired a 24% stake each in a portfolio of five ground level stores along a swath of Fifth Avenue just north of St.
Patrick's Cathedral and two sites in Times Square.
The deal comprised $950 million of mortgage debt, $1.83 billion of preferred equity entirely held by Vornado and $2.78 billion of common equity in which Vornado holds 51%.
The portfolio includes stores at 666 Fifth Avenue, a building that has been in the news because it was owned by the family of Jared Kushner, the son-in-law of US President Donald Trump, until Brookfield Asset Management bought a 99-year lease on the office portion last August.
"This investment underlines QIA's ambition to substantially increase our US investments over the coming years, and our belief in the exciting long-term possibilities offered by New York City," Mansoor bin Ebrahim Al Mahmoud, QIA's CEO, said in the statement.