Coach Sells Headquarters for $707 Million in Sale-Leaseback Deal
August 01 2016 - 7:33PM
Dow Jones News
By Maria Armental
Coach Inc. sold its headquarters in New York's Hudson Yards
development for $707 million under a sale and leaseback agreement,
the luxury retailer said Monday.
Separately, Allianz Real Estate, the property-management unit of
the German insurer, said it had bought a 44% stake in the 10 Hudson
Yards tower, the first building completed in the massive
redevelopment project on Manhattan's West Side, a signature
initiative of former Mayor Michael Bloomberg and the largest
private real-estate redevelopment since the economic downturn.
Allianz's 44% stake includes Coach's share and a portion the
stake held by Kuwait's sovereign-wealth fund, the Kuwait Investment
Authority.
The building is now owned by a limited partnership that includes
Allianz, with a cash investment of about $420 million, Related
Cos., Oxford Properties Group Inc. and institutional investors
advised by J.P. Morgan Asset Management. Deutsche Bank and Goldman
Sachs provided $1.2 billion in debt financing, according to a news
release Monday.
The first tenant to commit to the project in 2011, Coach paid
$530 million for its 738,000-square-foot portion of the 10 Hudson
Yards tower and an additional $220 million to build out the
space.
Best known for its handbags, Coach had said it intended to sell
its roughly 43% stake and lease back the office space. Monday, it
said it had signed a 20-year lease.
Coach would be the largest tenant in the building, bringing
under one roof its Coach and Stuart Weitzman brands.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
August 01, 2016 20:18 ET (00:18 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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