The New York Times has sold its landmark headquarters for $225 million in a deal that will see it leaseback the office space for a starting rent of $24 million a year, the media conglomerate announced yesterday
The New York Times has sold its landmark headquarters for $225 million in a deal that will see it leaseback the office space for a starting rent of $24 million a year, the media conglomerate announced yesterday.
The media company, which owns many leading newspapers like The New York Times, The International Herald Tribune and The Boston Globe, among others, had moved into 21 floors of the Renzo Piano designed building in 2007, but it was forced to sell its space as plummeting ad revenues coincided with the credit crunch to seriously impair the company's financial performance.
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The space were bought by New York-based real estate investment bank WP Carey & Co, which was "able to clearly understand our company, our facility and our objectives," Janet L Robinson, president and chief executive of the New York Times said in a statement.
"Its history and outstanding reputation in the sale-leaseback industry gave us the confidence that it would be the right firm with which to do this transaction."
"We are proud to work with such a world-class media company and to purchase such a world-class asset," said Gordon F DuGan, the real estate company's president and chief executive.
"Today's economic environment presents incredible challenges and opportunities, and we look forward to adhering diligently to the defensive, risk management-driven investment strategy that has provided historically solid performance."
Under the agreement, The New York Times Company can lease the building for 15 years and has an option to repurchase it for $250 million in 2017.
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