Ohio’s $77.6 billion teachers’ retirement plan has purchased a near-20% stake in a New York office building in a new development called Hudson Yards.
The State Teachers Retirement System of Ohio paid $431.9 million for the stake, 10 Hudson Yards, reports The Real Deal, which obtained the information via property records filed with Ohio.
The Related Companies and Oxford Properties Group, the majority owners of the property, told the publication that the agreement was “another vote of confidence” from a large-scale investor.
Hudson Yards is a massive new development rising in a once-blighted section of Manhattan near the Hudson River. It has attracted leases from major commercial tenants like media giant Time Warner, investment company BlackRock, and law firm Skadden Arps.
Other investors in the 52-story building are German insurer Allianz and the Kuwait Investment Authority. According to the deal, which includes a $1.2 billion refinancing of debt from Goldman Sachs and Deutsche Bank, the skyscraper is valued at $2.15 billion.
In New York, the teachers’ pension plan and Related also co-own the ground lease at the base of Related’s 240,000 square-foot retail condominium at One Union Square South. The Ohio retirement system also owns 15 Union Square West’s retail condo as well as 590 Madison Avenue’s 1 million-square-foot office building.
Along with the $262 billion Canada Pension Plan Investment Board, Allianz’ investment arm, Allianz Capital, recently became part of the first private infrastructure trust as part of a plan to further develop toll roads in India.
Tags: Allianz, Hudson Yards, Pension, Private Equity, State Teachers Retirement System of Ohio