Brookfield Property Partners L.P. has announced that one of its subsidiaries has entered into a joint venture with Qatar Investment Authority (QIA) on the mixed-use Manhattan West development project in New York City. In the transaction, Brookfield sold a 44% interest in the development to QIA. The total value of the development upon completion and stabilisation is estimated to be €7.8 bln ($8.6 bln).
“Brookfield has enjoyed a long-standing, successful relationship with QIA and we are thrilled that they share our vision for this transformative project,” said Bruce Flatt, CEO of Brookfield Asset Management.
“We are pleased to expand our relationship with Brookfield and invest in this world-class project. This joint venture is an example of our strategy to invest in high-quality real estate with strong partners. It is also a further demonstration of QIA’s long-term confidence in the US market," said His Excellency Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, CEO of Qatar Investment Authority.
Manhattan West is a five-building, 650,000 m² (7 million ft²) development project on the west side of Manhattan, bounded by 31st and 33rd Streets and 9th and 10th Avenues. The project consists of the following phases:
• One Manhattan West – The 67-storey, 186,000 m² (2 million ft²) office building currently under construction will be anchored by tenant Skadden, Arps, Slate, Meagher & Flom LLP and is scheduled for completion in 2019.
• Two Manhattan West – Will be the second 186,000 m² (2 million ft²) office tower constructed onsite following the lease-up of the first tower.
• Three Manhattan West – This 62-storey luxury residential tower currently under construction will feature 844 apartment units, welcoming its first residents in 2017 with final completion slated for 2018.
• Four Manhattan West – Initial plans for this phase envision a hotel or further residential units.
• Five Manhattan West – This 167,000 m² (1.8 million ft²) office building – formerly known as 450 West 33rd Street – is currently undergoing a €318 mln ($350 mln) redevelopment program which will fully modernise and integrate the building into the Manhattan West campus. In the last 12 months, Brookfield has signed leases totalling more than 37,000 m² (400,000 ft²) at this property to technology- and media-sector tenants, bringing current occupancy to 90%.
• Central Plaza / Retail – The Manhattan West campus will be transected by a two-acre public park, essentially creating a new “32nd Street” pedestrian thoroughfare, lined with abundant green space and approx. 19,000 m² (200,000 ft²) of retail, restaurants and amenities.
“Manhattan West is on track to be the leading premier mixed-use development in the Hudson Yards district – New York City’s next great neighbourhood,” said Ric Clark, CEO of Brookfield Property Group.
“The sale of an interest in Manhattan West is consistent with our strategy of actively recycling capital by partnering with leading institutional capital providers.”