Qatar fund, Crown Acquisitions in $5.6 bn New York realty deal
23 April 2019
Qatar Investment Authority (QIA) and private realty firm Crown Acquisitions on Friday said they are part of a $5.56 billion deal with Vornado Realty Trust for acquiring a portfolio of prime New York retail properties.
Vornado sold a non-controlling stake in its portfolio of properties along Fifth Avenue and Broadway in Times Square in a transaction of about $1.2 billion, the firm said on Thursday.
The two investors have together contributed $1.31 billion in cash in a newly created joint venture with Vornado.
QIA and Crown Acquisitions, which acted as an advisor to the deal, said they acquired a 24 per cent 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 takes into consideration $950 million of Vornado’s mortgage debt, $1.83 billion of preferred equity and $2.78 billion of common equity in which Vornado holds 51 per cent.
The portfolio include stores at 666 Fifth Avenue, a building was owned by the family of Jared Kushner, the son-in-law of President Donald Trump, until Brookfield Asset Management bought a 99-year lease on the office portion last August.
QIA chief executive Mansoor al-Mahmoud said in a statement the investment underlined QIA’s ambition to boost its US investments to $45 billion in coming years and “our belief in the exciting long-term possibilities offered by New York City.”
The retail portfolio includes such brands as MAC, Polo, Forever 21 and Disney. QIA, which is also an investor in Brookfield, had decided to avoid investing in funds or other vehicles it does not fully control, reports citing sources said.