Quebec Pension Buys Manhattan Office Tower for $2.2 Billion; Second Most Expensive Office Sale in U.S. History

Canadian pension fund Caisse de dépôt et placement du Québec said on Friday it had completed the second most expensive office sale in U.S. history by buying a Manhattan office tower for $2.2 billion.

The fund partnered with Callahan Capital Properties to buy the building, located at Three Bryant Park.

More from the Wall Street Journal:

The real estate arm of pension fund giant Caisse de dépôt et placement du Québec said Friday it partnered with Callahan Capital Properties to buy a midtown Manhattan office tower for $2.2 billion.

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Ivanhoé [the real estate arm of Caisse] said the New York property, known as Three Bryant Park, aligns well with its investment strategy of building a diverse portfolio of office properties in major U.S. markets.

“As we redeploy capital that has been rotated out of non-core assets globally, Three Bryant Park represents a cornerstone of our expanding U.S. office platform,” said Arthur Lloyd, Ivanhoé’s executive vice-president, global investments.

Ivanhoé has been a leading foreign investor in U.S. real-estate assets, betting that U.S. property prices are a good wager in the long term.

The deal bolsters the midtown Manhattan portfolio of Ivanhoé and Callahan, a real estate private equity firm. The companies control 1411 Broadway and 1211 Avenue of the Americas, home of The Wall Street Journal and News Corp . , among others.

Caisse de dépôt et placement du Québec manages $214.7 billion in assets.

Photo by Sarath Kuchi via Flickr CC License