Ivanhoé Cambridge and the Blackstone Group have closed their joint acquisition of Peter Cooper Village Stuyvesant Town (PCVST), a private residential development on the east side of the New York City borough of Manhattan. No financial terms were disclosed; however, a Bloomberg report previously estimated the deal’s value at about US$5.3 billion. Based in Montréal, Ivanhoé is the real estate investment arm of the Caisse de dépôt et placement du Québec.
Blackstone and Ivanhoé Cambridge Assume Ownership of Peter Cooper Village Stuyvesant Town
New York, New York and Montreal, Canada, December 18, 2015. Blackstone (NYSE:BX), through funds it manages on behalf of its real estate investors, and Ivanhoé Cambridge, a real estate subsidiary of Caisse de dépôt et placement du Québec (CDPQ), today announced that they have closed on the previously announced acquisition of Peter Cooper Village Stuyvesant Town (PCVST).
“We are proud to have entered into long-term partnership with the PCVST community and the City of New York,” said Jon Gray, Global Head of Real Estate for Blackstone. “We look forward to working together with them to preserve what makes this community so special.”
Daniel Fournier, Chairman and CEO of Ivanhoé Cambridge said: “We are honored to share with Blackstone the responsibility of the future of PCVST. This investment is a win-win for the community of 30,000 residents, for our investors and for New York.”
As part of the transaction, a long-term affordability program has been established to protect 5,000 below-market units, ensuring they remain affordable to moderate and middle-income families for at least the next 20 years. The agreement also offers new protections for roughly 1,400 “Roberts” units.
PCVST is a large, post-World War II private residential development on the east side of the New York City borough of Manhattan. PCVST has a combined total of over 11,200 apartments in 56 residential buildings across 80 acres of land.
Blackstone has received feedback from thousands of tenants over the past few months and intends to make additional announcements based on those conversations early in the New Year.
Eastdil Secured’s Doug Harmon acted as the exclusive advisor in the transaction.
Blackstone is one of the world’s leading investment firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, and the communities in which we work. We do this by using extraordinary people and flexible capital to help companies solve problems. Our asset management businesses, with over $330 billion in assets under management, include investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets and secondary funds, all on a global basis. Further information is available at www.blackstone.com. Follow Blackstone on Twitter @Blackstone.
About Ivanhoé Cambridge
Ivanhoé Cambridge, a global real estate industry leader, invests in high-quality properties and companies in select cities around the world. It does so prudently with a long-term view to optimize risk-adjusted returns. Founded in Quebec in 1953, Ivanhoé Cambridge has built a vertically integrated business across Canada. Internationally, the Company invests alongside key partners that are leaders in their respective markets.
Through subsidiaries and partnerships, Ivanhoé Cambridge has direct or indirect interests in over 160 million ft2 (up to 15 million m2) of office, retail and logistics properties as well as in more than 23,000 multiresidential units. Ivanhoé Cambridge held more than Cdn$48 billion in total assets as at June 30, 2015. The Company is a real estate subsidiary of the Caisse de dépôt et placement du Québec (cdpq.com), one of Canada’s leading institutional fund managers. For further information: ivanhoecambridge.com.
Photo courtesy of Ivanhoé Cambridge