The Dubai-based real estate investment company Istithmar World Real Estate, reported on the 26th December that it had closed on the sale of 230 Park Avenue to a American consortium which includes Goldman Sachs’ Whitehall Fund and Monday Properties for the sum of $1.15 billion. This transaction follows the sale of 280 Park Avenue to Broadway Properties in November for $1.35 billion.
The parent company – Dubai World, has been active in the United States real estate market for some years now, particularly in New York and still owns 450 Lexington Avenue, The W Hotel Union Square, The Mandarin Oriental Hotel, the QE2 and the Knickerbocker on Times Square.
Sultan Ahmed Bin Sulayem, Chairman of Dubai World said, “Our real estate investment activities in the US have been an important component of our overall strategy. We have been very successful in executing well-timed acquisitions and dispositions, and remain committed to further continued investment activity throughout the United States. While our original strategy with regards to 230 Park Avenue and 280 Park Avenue contemplated long term holds, we felt that market conditions created an unusual opportunity for us. Retaining the agility to change direction when circumstances dictate is important to Dubai World and these transactions demonstrate our ability to do so.”
Isithmar originally purchased the property in 2005 for only $705 million. Dubai World is the holding company which manages and supervises a portfolio of businesses and projects for the Dubai Government, working towards making Dubai the leading hub for trade and commerce and has more than 50,000 employees in more than 100 cities around the world. Its companies include DP World, P&O Ports and Ferries, Nakheel, Inchcape Shipping Services, Tejari and Tamweel.
230 Park Avenue has previously been the New York Central Building and the New York General Building, was erected in 1928 and once formed the center piece of Harry B. Helmsley’s real estate empire.