November 14, 2017 / 7:50 PM / a year ago

RPT-Allianz to buy stake in New York tower valued at $1.95 bln -SL Green

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NEW YORK, Nov 14 (Reuters) - SL Green Realty Corp, a major New York property owner, said on Tuesday it agreed to sell a 43 percent interest in a Times Square office tower to the real estate arm of Germany’s Allianz Group in a deal that values the building at $1.95 billion.

The 54-story, 1.86 million square foot (172,800 sq meter) building at 1515 Broadway is in the heart of the city’s theater district and is the international headquarters of Viacom Inc .

SL Green President Andrew Mathias said the transaction speaks to the continued strong interest in New York office assets from overseas investors.

Christoph Donner, chief executive of Allianz’ U.S. real estate unit, called the building a trophy asset that will give the firm’s growing New York portfolio significant upside.

About 70 percent of the transaction is expected to close on Nov. 30, said SL Green, which is organized as a real estate investment trust. The remainder is expected to close in the first quarter of next year, the company said.

SL Green will realize cash proceeds of $416 million after the final close, it said.

SL Green acquired a 55 percent stake in the building in May 2002 for $483.5 million, and almost a decade later in April 2011 bought the remainder for $1.21 billion. (Reporting by Herbert Lash; Editing by Tom Brown)

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