Time Warner Inc. (NYSE:TWX) today announced that Time Warner has sold
the 1.1 million square feet of office space it owns in Time Warner
Center for $1.3 billion to a venture of Related Companies, an entity
owned by the Abu Dhabi Investment Authority (ADIA) and GIC. The venture
will lease office space back to Time Warner until early 2019.
Additionally, Time Warner, Related Companies and Oxford Properties Group
announced that Time Warner intends to relocate the Company’s corporate
headquarters and its New York City-based employees to Hudson Yards on
the west side of Manhattan, and has accordingly made an initial
financial commitment.
Time Warner Chairman and CEO Jeff Bewkes said, “The sale of our office
space in Time Warner Center to Related Companies and its partners is an
important step toward moving our New York City-based employees into a
dynamic new complex that will foster even more collaboration,
creativity, and efficiency across our businesses. We began a process two
years ago to evaluate our commercial real estate footprint within the
New York Metropolitan area, where we currently own and lease space in
seven buildings. By consolidating our space to Hudson Yards, New York’s
next great neighborhood, we will be able to reallocate substantial
savings to our primary business of creating and sharing great
storytelling in television, film, and journalism with audiences around
the world.”
Eastdil Secured represented Time Warner on the sale of its office space
at Time Warner Center. Studley is representing Time Warner and CBRE is
representing Related and Oxford with respect to Time Warner’s planned
acquisition of space in Hudson Yards for its new corporate headquarters.
Time Warner Center
Related Companies led the development of Time Warner Center in Columbus
Circle and when the 2.8 million square foot Time Warner Center opened in
2004, it became the first vertical, mixed-use facility of its kind in
New York City. The Shops at Columbus Circle and The Restaurant and Bar
Collection consist of shopping, dining and entertainment programming
totaling 350,000 square feet of leasable space. Together with Jazz at
Lincoln Center’s three performance halls, this world-class destination
provides New York’s West Side with 500,000 square feet of dynamic
restaurant, retail and entertainment uses. The complex includes Time
Warner Inc.’s headquarters, One Central Park condominiums, The
Residences at the Mandarin Oriental, and the Mandarin Oriental five-star
luxury hotel. Recognized as the catalyst to transform a long suffering
Columbus Circle into a thriving epicenter of Manhattan, Time Warner
Center stands as the nucleus of this historic neighborhood.
Related Companies Chairman Stephen M. Ross said, “We are pleased to be
partnering with ADIA and GIC in the acquisition of the office space Time
Warner has occupied since 2004. Since opening, Time Warner Center has
become one of the most celebrated and successful mixed-use
developments--offering dynamic retail, hotel and cultural amenities and
first-class office space. Time Warner has been a great steward for what
will inevitably be some of the most sought after commercial office space
in the City.”
Regional Head of Americas at GIC Real Estate Tia Miyamoto said, “Time
Warner Center is one of the premier mixed-use projects in the country.
We see significant upside in leasing the high quality office space
following Time Warner Inc.’s planned relocation to 30 Hudson Yards. We
believe strong demand for this first-rate office property will translate
into a stable income stream which suits GIC as a long-term investor.”
With Time Warner’s planned move to Hudson Yards, Related will offer
space in one of the top office buildings in New York City to outside
tenants for the first time. The state-of-the-art space features two
dedicated office lobbies, ceiling heights ranging from over 13 feet to
27 feet, flexible and efficient floor plans, unique terraces and
panoramic views of Central Park.
30 Hudson Yards
Time Warner expects to acquire more than one million square feet of the
available commercial space in 30 Hudson Yards located at the southwest
corner of 10th Avenue and 33rd Street in Hudson Yards. Approximately
5,000 employees from Time Warner’s corporate operations and its HBO,
Turner Broadcasting, and Warner Bros. businesses will occupy the new
office space in 30 Hudson Yards at the end of 2018. The parties have
signed an initial agreement for the development of 30 Hudson Yards, and
all parties expect to complete final building development documents by
the first half of 2014.
Ross added, “Time Warner has always been a visionary media company and
Time Warner, led by Jeff Bewkes, is again showcasing its innovative and
pioneering spirit in anchoring 30 Hudson Yards. Hudson Yards will be
home to some of the most iconic brands in business and we are thrilled
at the prospect of once again working with Time Warner to not only build
a best-in-class headquarters site but also a community.”
Oxford Chief Executive Officer Blake Hutcheson said, “Time Warner has
shown incredible vision not only in its core business of storytelling,
but also in its commitment to establishing a collaborative and creative
space,” said Hutcheson. “We are very excited to partner with Time Warner
alongside Related, and to deliver a business community in which Time
Warner will simply thrive.”
The LEED Gold 80-story 30 Hudson Yards, designed by acclaimed global
architects Kohn Pedersen Fox Associates (KPF), will stand 1,227 feet
tall and offer state-of-the-art commercial office space for Time
Warner’s 5,000 employees, including screening rooms, studio space and
dedicated corporate amenity spaces. The 2.6 million square foot building
will feature panoramic views of the city skyline and Hudson River, what
will be the city’s highest outdoor observation deck and a dramatic
ground floor lobby with entrances off of Tenth Avenue and Hudson
Boulevard, directly adjacent to the entrance to the new No. 7 subway
extension. Upon completion, 30 Hudson Yards will be the fourth tallest
building in New York City. Construction of the 10-acre platform that
will serve as the foundation of 30 Hudson Yards, the remaining towers in
the eastern rail yard and the public space is expected to commence in
upcoming weeks. The neighboring 10 Hudson Yards will be home to Coach
Inc., L’Oreal USA, SAP and Fairway Market.
Hudson Yards
Hudson Yards is largest private real estate development in U.S. history
and the largest development in New York City since Rockefeller Center.
It is anticipated that more than 24 million people will visit Hudson
Yards every year. The site will include 17 million square feet of
commercial and residential space, more than 100 shops and restaurants,
approximately 5,000 residences, a unique cultural space, 14-acres of
public open space, a new 750-seat public school and a 150-room luxury
hotel – all offering unparalleled amenities for residents, employees and
guests. The development of Hudson Yards will create more than 23,000
construction jobs, and when completed in 2024, more than 65,000 people a
day will either work, visit or live in Hudson Yards. Hudson Yards is
also one of the most accessible sites in the region with connections to
commuter rail, the subway system, the West Side Highway, the Lincoln
Tunnel and ferries along the Hudson River. Grand Central Terminal will
be only 6 minutes away by subway, and Penn Station, the nation’s busiest
train station, is a short walk away.
ABOUT TIME WARNER INC.
Time Warner Inc., a global leader in media and entertainment with
businesses in television networks, film and TV entertainment and
publishing, uses its industry-leading operating scale and brands to
create, package and deliver high-quality content worldwide through
multiple distribution outlets.
ABOUT RELATED COMPANIES
Founded 40 years ago, Related Companies is a fully-integrated, highly
diversified real estate industry leader with experience in virtually
every aspect of development, acquisitions, management, finance, fund
management, marketing and sales. Related Companies’ existing portfolio
of real estate assets, valued at over $15 billion, is made up of
best-in-class mixed-use, residential, retail, office, trade show and
affordable properties in premier high-barrier-to-entry markets. With
offices and major developments in Abu Dhabi, Boston, Chicago, Los
Angeles, New York, San Francisco, Sao Paulo and South Florida, Related
is well-known for having developed the 2.8 million square foot Time
Warner Center in New York City and the 72-acre CityPlace in West Palm
Beach, as well as being a leader in green building. For more information
about Related Companies please visit www.related.com.
ABOUT ADIA
Established in 1976, the Abu Dhabi Investment Authority (ADIA) is a
globally diversified investment institution that is wholly owned by the
Government of Abu Dhabi.
ADIA manages a substantial global investment portfolio, which is highly
diversified across more than two-dozen asset classes and sub-categories,
including quoted equities, fixed income, real estate, private equity,
alternatives and infrastructure. With a long tradition of prudent
investing, ADIA’s decisions are based solely on its economic objectives
of delivering sustained, long-term financial returns.
ABOUT GIC
GIC is among the world’s largest fund management companies. It was
established in 1981 to manage Singapore’s foreign reserves. GIC strives
to achieve good long-term returns on assets under its management, so as
to preserve and enhance Singapore’s reserves. Since its inception, GIC
has grown from managing a few billion dollars to well above US$100
billion today. GIC’s investment framework capitalises on its strengths
which include the ability to take a long-term investment perspective, a
global presence, capabilities to invest in cross- asset opportunities,
and a skilled and experienced team. It has investments across 40
countries and in assets such as equities, fixed income, real estate and
private equity. GIC has been investing in emerging markets for over
twenty years. GIC is headquartered in Singapore with a network of
offices in nine cities worldwide. For more information on GIC please
visit www.gic.com.sg
ABOUT OXFORD PROPERTIES GROUP
Oxford Properties Group is a global platform for real estate investment,
development and management, with over 1,400 employees and over $20
billion of real assets that it manages for itself and on behalf of its
co-owners and investment partners. Established in 1960, Oxford has
regional offices in Toronto, London and New York, and the company’s
portfolio includes approximately 50 million square feet of office,
retail, industrial, multi-family and hotel properties. Oxford is the
real estate arm of the OMERS Worldwide Group of Companies.
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements can be identified by the fact that they do not relate
strictly to historical or current facts. Forward-looking statements
often include such words as “anticipates,” “estimates,” “expects,”
“projects,” “intends,” “plans,” “believes” and words and terms of
similar substance. Time Warner’s actual results may vary materially from
those expressed or implied by the statements in this press release due
to changes in economic, business, competitive, technological, strategic
and/or regulatory factors and other factors affecting the operation of
Time Warner’s businesses. More detailed information about these factors
may be found in filings by Time Warner with the Securities and Exchange
Commission, including its most recent Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q. Time Warner is under no
obligation to, and expressly disclaims any such obligation to, update or
alter any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Copyright Business Wire 2014