The National Pension Service has secured a second-largest shareholder position with a 27-percent stake in a landmark building currently under construction in New York City by investing US$500 million. This is the largest-ever overseas real estate deal for the public pension fund.
Bloomberg reported on January 30 that the Korean pension fund acquired the 27-percent stake in “One Vanderbilt Place,” a 57-floor skyscraper on the corner of 42nd Street and Vanderbilt Avenue in midtown Manhattan, next to Grand Central Terminal from developer SL Green Realty.
Bloomberg said the 150,000-square-meter building will become a landmark of New York City as visible as the Empire State Building and Rockefeller Center once completed in 2020.
SL Green explained that the building is adjacent to the Waldorf Astoria New York, the United Nations Headquarters, and the Chrysler Building, as well as Grand Central Terminal, with high foot traffic in the area. The developer also said that it won a special partner through the deal. A Wall Street private equity firm official commented, “This is a great opportunity for the National Pension Service to get out of the stigma of being under investigation by the prosecutors.”
With the One Vanderbilt deal, the National Pension Service will have a total of five real estate properties in New York City.
By Simgee Lee