A venture of the Related Companies, the Abu Dhabi Investment Authority and Singapore’s GIC has purchased the office space of Time Warner Inc. at the Time Warner Center for $1.3 billion, the seller announced today.
Time Warner will relocate its corporate headquarters and New York City employees from Columbus Circle to Related’s Hudson Yards. The company has made an “initial financial commitment” to the development, according to a press release. Time Warner has agreed to lease back office space in the Time Warner Center until 2019, when the development at Hudson Yards is expected to be complete.
“The sale of our office space in Time Warner Center to Related Companies and its partners is an important step toward moving our New York City-based employees into a dynamic new complex that will foster even more collaboration, creativity, and efficiency across our businesses,” said Jeff Bewkes, chief executive of Time Warner, in a statement.
The sovereign wealth funds of Abu Dhabi and Singapore will fund over 80 percent of the Time Warner Center acquisition, according to an earlier report in The Wall Street Journal.
As Time Warner plans its move to Hudson Yards, Related will market space in the Time Warner Center to outside tenants for the first time. The space boasts two dedicated office lobbies and panoramic views of Central Park, among other features.
“Time Warner Center has become one of the most celebrated and successful mixed-use developments–offering dynamic retail, hotel and cultural amenities and first-class office space,” Stephen Ross, chairman of Related, said in a statement. “Time Warner has been a great steward for what will inevitably be some of the most sought after commercial office space in the city.”
Time Warner expects to acquire over 1 million square feet of office space in the 80-story tower at 30 Hudson Yards, where approximately 5,000 of the company’s employees will be based.
“We began a process two years ago to evaluate our commercial real estate footprint within the New York Metropolitan area, where we currently own and lease space in seven buildings,” Mr. Bewkes added in his statement. “By consolidating our space to Hudson Yards, New York’s next great neighborhood, we will be able to reallocate substantial savings to our primary business of creating and sharing great storytelling in television, film, and journalism with audiences around the world.”
Time Warner was represented by Eastdil Secured in the sale. Studley represented Time Warner in the transaction to secure space at Hudson Yards. Related and Oxford Properties were represented by CBRE.