Canada Pension Board Sells NYC Building Stake for $1.03 Billion

Canada Pension Plan Investment Board sold its 45 percent stake in the former McGraw-Hill Building, part of the Rockefeller Center complex in midtown Manhattan, for $1.03 billion.

The buyer was a global institutional investor that wasn’t named. Rockefeller Group will keep the remaining 55 percent of 1221 Avenue of the Americas, and will continue to manage the 50-story, 2.6 million-square-foot (241,500-square-meter) tower, the pension fund said in a statement Friday. The transaction values the building at $2.29 billion.

“We feel this is an opportune time to monetize our position in the property,” Hilary Spann, managing director and head of U.S. real estate investments for the board, said in the statement. “Manhattan remains a target market for us, and we continue to pursue new investment opportunities here and in other key U.S. real estate markets.”

The fund will net about $950 million, not counting closing adjustments, from the sale, it said. As of Sept. 30, the pension fund totaled C$300.5 billion ($221.8 billion), according to the statement.