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.
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.