Time Warner Inc. today announced it has sold the 1.1 million s/f of office space it owns in Time Warner Center for $1.3 billion to a joint venture of Related Companies, an entity owned by the Abu Dhabi Investment Authority and GIC. The venture will lease office space back to Time Warner until early 2019.
Time Warner intends to relocate the Company’s corporate headquarters and its New York City-based employees to Hudson Yards on the west side of Manhattan, and has accordingly made an initial financial commitment, the companies also announced.
“The sale of our office space in Time Warner Center to Related Companies and its partners is an important step toward moving our New York City-based employees into a dynamic new complex that will foster even more collaboration, creativity, and efficiency across our businesses,” Jeff Bewkes, Time Warner’s CEO, said in a statement. “We began a process two years ago to evaluate our commercial real estate footprint within the New York Metropolitan area, where we currently own and lease space in seven buildings. By consolidating our space to Hudson Yards, New York’s next great neighborhood, we will be able to reallocate substantial savings to our primary business of creating and sharing great storytelling in television, film, and journalism with audiences around the world.”
Eastdil Secured represented Time Warner on the sale of its office space at Time Warner Center. Studley is representing Time Warner and CBRE is representing Related and Oxford with respect to Time Warner’s planned acquisition of space in Hudson Yards for its new corporate headquarters.