The Abu Dhabi sovereign wealth fund that offloaded the Chrysler Constructing this 12 months at an enormous loss has struck a deal to promote one other Manhattan trophy property.
Abu Dhabi Funding Authority is promoting its 40-story workplace constructing at 330 Madison Avenue to the massive German reinsurance agency Munich RE, sources advised The Actual Deal.
Munich RE has a contract to purchase the 1960s-era excessive rise for someplace between $850 million and $900 million, in keeping with one supply.
The ADIA had set a determine of $800 million as the place to begin for negotiations within the first spherical of bidding. However Munich RE preempted a second spherical by coming in far above ADIA’s pricing steering, in keeping with sources.
Representatives for ADIA and Munich RE didn’t reply to requests for remark. CBRE’s Darcy Stacom and Invoice Shanahan marketed 330 Madison Avenue on behalf of ADIA. The brokers couldn’t be reached for remark.
The ADIA has owned a majority stake within the 846,000-square-foot constructing between East 42nd and East 43rd streets for 30 years. In June the entity exercised an possibility to purchase the 25 p.c it didn’t personal from its accomplice, Vornado Realty Belief, as a way to market the complete tower on the market.
Vornado offered its stake for greater than $1,000 per sq. foot, which valued the property at roughly $900 million.
The ADIA, nonetheless, is understood to be a market vendor, as evidenced by the sale of its curiosity within the floor lease controlling the Chrysler Constructing earlier this 12 months. Abu Dhabi and its accomplice, Tishman Speyer, offered the leasehold curiosity on the long-lasting skyscraper in March to Aby Rosen’s RFR Holding and Austrian actual property firm Signa Holding for $150 million.
That was a steep low cost to the $800 million the ADIA paid for its majority stake within the tower in 2008.