NORTH AMERICA – Ivanhoe Cambridge has made an investment of over $360m (€281m) in an office building on Broadway in New York.
The acquisition by the subsidiary of one of Canada's largest pension managers Caisse de dépôt et placement du Québec brings to three the number of Manhattan office developments in which Ivanhoe now owns interests.
Adam Adamakakis, executive vice president investments for Eastern North America, said in a statement that Manhattan was one of Ivanhoe's target markets.
"Our investment in 1411 Broadway strengthens our presence in New York City within a context where we see encouraging signs of a recovery for the U.S. economy," he said.
The capital supplied by Invanhoe takes the place of previous equity partner in the property, The Blackstone Group, and Ivanhoe now owns 49.9% of the property. The remaining interest in the property is held by The Swig Company based in San Francisco.
Commenting on the deal, Jeanne Myerson, chief executive officer of Swig said: "We look forward to this new partnership with Ivanhoe Cambridge and to investing alongside them to bring 1411 Broadway, which was originally developed by our company founder, further success."
Daniel Fournier, chief executive officer of Ivanhoe, said: "This office building's location, size and quality give it uncommonly attractive leasing features, allowing us to generate attractive returns for our depositors."
The property, 1411 Broadway was first constructed in 1970 and renovated four years ago At the closing of the investment, the property was 86% occupied.
Both Invanhoe and Swig will be investing some additional capital beyond the purchase price towards the physical improvement, energy efficiency and tenant amenities of the building in the short term. The goal is to leasing the vacant space and rolling below market rents of existing tenants to market.
Ivanhoe is looking to make additional investments in more office buildings in the future. The company's targets in the US are New York, Washington, DC, Boston, Chicago, San Francisco, Seattle and Los Angeles. It is also a player in Canada and Europe, where it owns units in Montreal, Toronto, Calgary, Vancouver, Paris and London.