SL Green Secures $250M Commitment From Canadian Investor for NYC Debt Fund
By Isabelle Durso December 5, 2024 5:34 pm
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SL Green (SLG) Realty has secured a $250 million commitment from a Canadian investor to anchor its fund to purchase loans or loan portfolios around the city, the company announced Thursday.
The investor for the SLG Opportunistic Debt Fund is the Canadian pension fund Caisse de Dépôt et Placement du Québec (CDPQ), according to sources with knowledge of the deal. Bloomberg first reported the news.
“A world-class investor and the ideal anchor has been secured for the SLG Opportunistic Debt Fund,” Harrison Sitomer, chief investment officer at SL Green, said in a statement. “We look forward to deploying SL Green’s fully integrated platform and New York market expertise to capitalize on a robust pipeline of investment opportunities at attractive risk-adjusted returns.
“We appreciate our anchor partner’s support and are excited to welcome additional best-in-class investors to the fund in the coming weeks,” Sitomer added.
A spokesperson for CDPQ did not immediately respond to a request for comment.
SL Green’s debt fund was launched earlier this year as a way to “capitalize on current capital markets dislocation through structured debt investments in high-quality New York City commercial assets,” the real estate investment trust (REIT) said.
Through its anchor commitment from CDPQ, the debt fund will originate or purchase loans or loan portfolios in the city’s office and retail sectors, according to SL Green.
SL Green is also expected to close another commitment before the end of the year, bringing the investment in its debt fund to around $500 million, Bloomberg reported. SL Green is targeting a total of roughly $1 billion for the fund, according to the outlet.
The debt fund is also the “only one of its scale that is entirely New York City-centric,” SL Green CEO Marc Holliday said during the company’s first-quarter earnings call, Bloomberg reported.
Thursday’s announcement comes after a string of recent good news for SL Green. Just this week, the REIT secured a loan modification and extension on its $1.25 billion mortgage on One Madison Avenue, as Commercial Observer previously reported.
That came after SL Green received a three-year extension in November on its $742.8 million mortgage loan at 1515 Broadway, where it hopes to develop Caesars Palace Times Square if granted a license to open a casino. Plus, the landlord sold off an 11 percent stake in its One Vanderbilt office tower to a Japanese developer at a whopping $4.7 billion valuation.
Isabelle Durso can be reached at idurso@commercialobserver.com.
