The New York Times Company – publisher of the New York Times and the International Herald Tribune – has sold part of the space it owns and occupies in its New York headquarters to US sale-and-leaseback specialist W.P. Carey & Co for $225m (£162m).
The publisher plans to use the proceeds to pay off its debt.
W.P. Carey & Co bought 750,000 sq ft or 21 floors of the building from the New York Times Company in the sale and leaseback deal, with its two public affiliates, CPA(r):16 – Global and CPA(r):17 – Global.
The building, located on 8th Avenue, is 52 storeys in total and was designed by Renzo Piano and completed in 2007.
President and chief executive of the New York Times Company Janet Robinson, said: ‘W.P. Carey was able to clearly understand our company, our facility and our objectives. Its history and reputation in the sale-leaseback industry gave us the confidence that it would be the right firm with which to do this transaction.’
W.P.Carey president and chief executive, Gordon DuGan, said: ‘W.P. Carey continues to provide – as it has for more than 35 years – sale-leaseback financing to companies in all stages of the credit cycle. Today’s economic environment presents incredible challenges and opportunities.’
The lease term is 15 years and there is an option for the New York Times Company to repurchase the space for $250m (£180m) in the tenth year of the lease term.
The rental payment is $24m (£17m) for the first year and will increase.
Andrew Sachs and Cushman & Wakefield advised the New York Times Company.