Norway’s sovereign wealth fund has extended its ownership interest in the Hudson Square portfolio in Lower Manhattan that it part-owns with real estate firm Hines and Trinity Church Wall Street, to a 99-year term from 72 years.
The NOK8.9trn (€919bn) fund, the Government Pension Fund Global (GPFG), will pay approximately $98m (€87m) for the extension of its 48% ownership interest in the 12-asset portfolio, the fund’s manager Norges Bank Investment Management (NBIM) announced.
The deal, signed yesterday, which NBIM said involved no financing, also includes agreements to acquire a 48% stake in two planned properties next to the Hudson Square offices, when the buildings are completed.
The yet-to-be-built properties are now owned solely by Trinity Church Wall Street, which plans to develop 283,000sqft of office and retail space, NBIM said.
The proposed buildings will be located at 92 Avenue of the Americas and 561 Greenwich Street.
NBIM’s partnership with the property-rich downtown New York parish began in 2015 when the rector of the church Bill Lupfer said the link-up would “help to continue Trinity’s ministries around the globe for many generations to come”.
In August 2017, Norges added to the original 11 part-owned assets in the portfolio by buying into a nearby office and retail property owned by the church on a 48%-ownership basis for $223m for a 93-year interest.