Singapore wealth fund GIC acquires Wall Street tower for $1.48 bln

The 47-storey office tower of 1.6 million sqft is located 60 Wall Street.

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Singapore's Minister Mentor Lee Kuan Yew, chairman of the Government of Singapore Investment Corp. (GIC), speaks at GIC's 25th anniversary dinner at a hotel in Singapore in this July 11, 2006 file photo. Reuters

Singapore sovereign wealth fund GIC will acquire the Wall Street building that houses the US headquarters of Deutsche Bank for US$1.04 billion (S$1.48 billion).

The Government of Singapore Investment Corporation is partnering with real estate firm Paramount Group for the joint venture purchase in which the wealth fund will hold a 95 percent stake. The 47-storey office tower of 1.6 million sqft is located 60 Wall Street.

"This investment reflects our long-term confidence in Downtown Manhattan which is benefitting from over $30B of recent public and private investments in infrastructure and new construction," Adam Gallistel, GIC's regional head of Americas, said.

"We believe 60 Wall Street is one of the top buildings in Downtown and is poised to benefit from the ongoing downtown renaissance. We are also very happy to expand our partnership with Paramount, which is among the leading owners, operators and managers of Class A office properties in the U.S," he added.

Paramount, which managed the property through its ownership in certain private equity funds, will continue to serve as the property's manager Subsequent to the acquisition.

"We are thrilled to enter into this new joint venture with GIC, one of the preeminent owners and operators of real estate in the world. We believe GIC's commitment to 60 Wall Street is reflective of its confidence in Paramount's management team and the strength of the New York City real estate market," Albert Behler, Chairman, Chief Executive Officer and President of Paramount, said.

The Singapore government investment fund, which was established in 1981, has over $100 billion in assets under management. Last November, GIC said it was acquiring European logistics property company P3 Logistics Parks for S$3.7 billion in the largest European real estate transaction last year.