By Linda O’Flanagan
Vornado Realty Trust is set to sell its minority stake in 330 Madison Avenue to the Abu Dhabi Investment Authority (ADIA) for around $600 million.
The company announced last week that ADIA, which owns 75 per cent of the tower, was initiating a “buy/sell process” the take over the remaining 25 percent.
Vornado said net proceeds from the sale of its share in the 846,000 s/f Manhattan office building would be $100 million after deducting the existing $500 million mortgage loan.
The sale is expected to close in the third quarter of 2019.
Located between East 42nd and East 43rd Streets a block east of Grand Central Station, 330 Madison was built in 1965.
It underwent a $100 million repositioning in 2014 which drew several high profile tenants, including Guggenheim Partners, Ericsson information technology company and Blue Note Assets.
ADIA, which the Sovereign Wealth Fund Institute estimates manages nearly $700 billion in assets, has between five and 10 per cent of its portfolio in real estate.
Vornado recently sold a non-controlling stake in its portfolio of New York properties along Fifth Avenue and Broadway in Times Square to Qatar Investment Authority (QIA) and private realty firm Crown Acquisitions in a transaction that provided the firm cash proceeds of about $1.2 billion.
ADIA manages a global investment portfolio across more than two dozen asset classes.
