Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, plans to buy out Vornado Realty Trust’s 25 percent stake in the midtown Manhattan office tower at 330 Madison Ave, according to a person familiar with matter.
The deal would give the Abu Dhabi fund, already the building’s majority holder, full ownership. Vornado said it agreed to sell its interest in the property as part of a “buy/sell process initiated by its 75 percent partner at a $900 million valuation.” The New York company anticipates about $100 million of net proceeds after deducting an existing $500 million mortgage, and expects the transaction to close in the third quarter.
ADIA, as the Abu Dhabi fund is known, allocates 5 percent to 10 percent of its massive portfolio to real estate, according to its annual report.
The 846,000-square-foot (79,000-square-meter) tower is in a prime location, just a block from Grand Central Terminal and One Vanderbilt, the shiny new skyscraper SL Green Realty Corp. is building.