Canada Pension Plan Investment Board, Toronto, acquired a 45% stake in the McGraw-Hill headquarters building in New York from SL Green Realty for US$576 million.
SL Green will also sell a 45% stake in a venture that will acquire 600 Lexington Ave. to the C$123.9 billion (US$120.5 billion) CPPIB.
Proceeds from the stake in the McGraw-Hill building at 1221 Avenue of the Americas will help SL Green finance the Lexington Avenue building acquisition as well as 125 Park Ave. for $330 million.
The Avenue of the Americas and Lexington Avenue transactions are expected to close this month, while the proposed Park Avenue deal will probably close in the third quarter, the company said.
SL Green acquired its ownership interest in McGraw-Hill's headquarters in 2003. The building is one block from Rockefeller Center and across the street from Radio City Music Hall, while the Park Avenue property overlooks Grand Central Station.