AT&T Unit Plans Sale of Hudson Yards Stake to Related
AT&T Unit Plans Sale of Hudson Yards Stake to Related
(Bloomberg) -- AT&T Inc.’s WarnerMedia unit agreed to sell its stake in a Hudson Yards office tower on Manhattan’s far west side to Related Cos. and partners for more than $2 billion, according to a person familiar with the matter.
Related, the developer that’s building the $25 billion Hudson Yards mega-project with Oxford Properties Group Inc., would purchase and lease back the 1.5 million-square-foot (139,000-square-meter) space in 30 Hudson Yards to WarnerMedia, said the person, who asked not to be identified because a definitive agreement hasn’t been signed. The term of the leaseback would be 15 to 20 years, the person said.
Allianz SE is among Related’s potential partners in the deal, while Invesco Real Estate is among other bidders that held discussions to buy the stake, according to people familiar with the matter.
Representatives for Allianz, AT&T, Invesco and Related declined to comment. Doug Harmon, the Cushman & Wakefield Plc broker who is representing WarnerMedia in the deal, also declined to comment.
Harmon also represented the media and entertainment giant in 2014 when it sold its headquarters at Time Warner Center in New York City’s Columbus Circle for $1.3 billion to a group led by Related and announced plans to move its offices to 30 Hudson Yards. That skyscraper is one of five new office buildings planned in the 28-acre mixed-use development. It has attracted companies including KKR & Co. Inc. and Wells Fargo & Co., and is the second-tallest office tower in New York, according to Related’s website.
WarnerMedia isn’t the first to do a sale-leaseback in Hudson Yards. Coach Inc. in 2016 sold its stake in the neighboring 10 Hudson Yards tower to Allianz in a deal that valued that skyscraper at $2.15 billion.
--With assistance from Scott Moritz.
To contact the reporters on this story: Lily Katz in New York at lkatz31@bloomberg.net;Gillian Tan in New York at gtan129@bloomberg.net
To contact the editors responsible for this story: Debarati Roy at droy5@bloomberg.net, Josh Friedman, Dan Reichl
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