40% Stake in Iconic GM Building Sold

gmnyTrophy Manhattan real estate is in demand for foreign income investors. Meraas Capital LLC, a Dubai-based private equity firm and US Real Estate Opportunities I, L.P., a Goldman Sachs managed fund whose principal investors are government investors from Kuwait and Qatar, are selling a 40% stake in the General Motors Building. The tower buyers are M. Safra & Co, an investment firm owned by the Safra family and the family of Zhang Xin, CEO of Soho China Ltd. The Sungate Trust is the holding entity for the new investors. Soho China Ltd. is one of the biggest office developers in Shanghai and Beijing.

The deal values the 50-story iconic tower, across from the Plaza Hotel, at US$ 3.4 billion.

The stake will be purchased for around US$ 1.4 billion. Boston Properties Inc, a real estate investment trust, will retain the 60% majority ownership in the property.

Back in 2008, Boston Properties Limited Partnership and US Real Estate Opportunities I, L.P., a Goldman Sachs managed fund partnered with Meraas Capital LLC to buy the building. Part of a bigger deal, with regard to the GM building, the group paid US$ 2.8 billion. Harry Macklowe was the previous owner at the time; he purchased the building in 2003 for US$ 1.4 billion. At the time, it was the highest full sale price paid for a single office building in the United States.

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