BLUE SKY FINALISES SECOND NEW YORK ACQUISITION
Written on the 7 December 2016
BLUE Sky Alternative Investments (ASX:BLA) has finalised its acquisition of a second office tower in New York through Cove Property Group.
Located in Manhattan, 441 Ninth Avenue represents a transaction value of more than $400 million and follows the purchase of 2 Rector Street in March.
The majority of the equity for the deal was provided by a blue chip institutional investor in the US.
The eight-storey building is a five-minute walk away from Penn Station, Hudson Yards and Manhattan West.
"Cove plans to fully redevelop the property into a Class A office tower in one of Manhattan's most rapidly expanding submarkets, which has already begun to benefit from a projected US$20 billion of private and public capital expenditure, and welcomed an influx of global blue chip tenants including KKR, Wells Fargo, Boston Consulting Group, Coach, JP Morgan and L'Oreal," Blue Sky says in a statement to the market.
The acquisition reflects an 'important milestone' in Blue Sky's growth plans in the US, and is expected to contribute to its FY17 guidance of between $24 million and $26 million.
The company is on track to achieve its assets under management target of $3 billion by June 30.
The repositioning of 2 Rector Street is on time and on budget, and is expected to be completed by the end of next year.
Blue Sky owns a 38 per cent economic interest in Cove Property Group.