{"id":43515,"date":"2025-07-14T07:23:31","date_gmt":"2025-07-14T04:23:31","guid":{"rendered":"https:\/\/www.commercialcafe.com\/blog\/?p=43515"},"modified":"2025-07-10T12:52:45","modified_gmt":"2025-07-10T09:52:45","slug":"saudi-pif-partners-related-625-madison","status":"publish","type":"post","link":"https:\/\/www.commercialcafe.com\/blog\/saudi-pif-partners-related-625-madison\/","title":{"rendered":"Saudi Fund Partners With Related for Proposed Manhattan Office Tower"},"content":{"rendered":"

Saudi Arabia\u2019s government fund is partnering with Related Companies to acquire a two-thirds stake in a site at 625 Madison Ave. in Manhattan, where a new skyscraper is planned. The total cost for the site and its development is projected to exceed $1 billion, according to sources familiar with the deal. The fund has already invested $200 million<\/a> into the project, although its final contribution is still being determined.<\/p>\n

Initially, Related Cos. envisioned a mixed-use development for the location, including residential units, retail space and a hotel. However, the firm recently pivoted its plans and is now considering an 840,000-square-foot office building, instead, aiming to capitalize on the robust demand among businesses for premium office space in New York City<\/a>.<\/p>\n

Now jointly owned by the New York developer and the Saudi government fund, the 625 Madison Ave. site \u2014 just a block from Central Park \u2014 was acquired last year for more than $600 million. The partnership\u2019s immediate priority was to demolish the existing office building, which had a notable history as both Nabisco\u2019s former headquarters and, at one time, Related\u2019s own HQ, as well.<\/p>\n

The five-block area surrounding Related\u2019s site has emerged as a particularly sought-after location for developers: 625 Madison Ave. sits only a block from Extell\u2019s proposed luxury supertall at 655 Madison Ave. and the former Barneys store at 660 Madison Ave., where Ashkenazy Acquisition Corp. hopes to attract a billion-dollar buyer. The site is also near 590 Madison Ave., which RXR is under contract to purchase for $1.1 billion.<\/p>\n

With assets totaling approximately $1 trillion, Saudi Arabia\u2019s Public Investment Fund (PIF) stands as one of the globe\u2019s largest investors and is a significant overseas fund making a return to the New York market.<\/p>\n

PIF shares a close relationship with Related Companies, which is renowned for its extensive Hudson Yards development on Manhattan\u2019s west side. This partnership deepened in 2020 when the Saudi fund made a debt investment in Related, convertible into a 15% equity stake. Since then, the two entities have collaborated closely on numerous real estate ventures, including the planned skyscraper at 625 Madison Ave. in Manhattan.<\/p>\n

Historically, the Saudi Public Investment Fund\u2019s involvement in real estate outside of Saudi Arabia was relatively modest with most of its property-focused capital directed toward domestic megaprojects designed to transform the nation.<\/p>\n

However, in the last few years, the fund has significantly expanded its global real estate footprint by acquiring stakes in several high-profile international properties and brands. This expansion includes last year\u2019s acquisition of a 40% stake in Selfridges \u2014 a high-end U.K. department store group \u2014 and a 49% stake in the upscale hotel chain Rocco Forte.<\/p>\n","protected":false},"excerpt":{"rendered":"

Saudi Arabia\u2019s government fund is partnering with Related Companies to acquire a two-thirds stake in a site at 625 Madison Ave. in Manhattan, where a new skyscraper is planned. The total cost for the site and its development is projected to exceed $1 billion, according to sources familiar with the deal. The fund has already invested $200 million into the project, although its final contribution is still being determined.<\/p>\n","protected":false},"author":56,"featured_media":43516,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[37,38,4014,39],"tags":[],"class_list":["post-43515","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-real-estate-news","category-deals","category-featured","category-office","wpautop"],"acf":[],"yoast_head":"\nSaudi PIF Buys Stake in Related's 625 Madison | 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