Skip to main content

Report On Business Ivanhoé partners on $2.2-billion acquisition of Manhattan tower

Three Bryant Park (far right) is shown in midtown Manhattan in this undated handout photo.

Handout/Ivanhoé Cambridge

The Caisse de dépôt et placement du Québec's real estate arm and a partner have acquired another prestigious Manhattan office tower, for $2.2-billion (U.S.).

Ivanhoé Cambridge and Callahan Capital Properties said on Friday they have bought a 100-per-cent interest in the 1.2-million-square-foot Three Bryant Park in midtown Manhattan.

The transaction is the latest in Ivanhoé Cambridge's strategy of exiting non-core assets such as hotels and focusing on office buildings, residential units and shopping centres in Canada, the U.S., Europe, Brazil and Asia.

Story continues below advertisement

Total assets at the end of 2013 were more than $40-billion (Canadian).

Three Bryant Park is located on the Avenue of the Americas between 41st and 42nd streets. Marquee tenants include MetLife, Verizon and Dechert LLP.

"The opportunity to acquire a truly iconic property like Three Bryant Park is extremely rare," Ivanhoé Cambridge executive vice-president of global investments Arthur Lloyd said.

"As we redeploy capital that has been rotated out of non-core assets globally, Three Bryant Park represents a cornerstone of our expanding U.S. office platform."

Three Bryant Park is 97 per cent leased for the long term to high-credit quality tenants, he said.

"It fits perfectly into our investment strategy of building a diversified portfolio of top-quality office properties in gateway U.S. office markets."

The U.S. office portfolio Ivanhoé Cambridge is building with Callahan now totals almost 5 million square feet in New York City and more than 10 million square feet nationally, Callahan chief executive officer Tim Callahan said.

Report an error Editorial code of conduct
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter