After a decade of partnership, AG Real Estate announces the sale of its shares in the holding DTH Capital, owner of two iconic skyscrapers in New York: 70 Pine Street and 20 Exchange Place.
After a decade of partnership, AG Real Estate announces the sale of its shares in the holding DTH Capital, owner of two iconic skyscrapers in New York: 70 Pine Street and 20 Exchange Place. This transaction marks the conclusion of a collaboration that began in 2013 and, with a positive net accounting result, concludes our involvement in the residential redevelopment of four major assets across the Atlantic.
A major American venture for prestigious properties
Initiated in 2013, AG Real Estate's involvement in DTH was aimed at redeveloping and then reselling four Art Deco-style office towers built in 1930 as luxury residential flats. Two of these, 63 Wall Street and 67 Wall Street, were successfully sold in 2016.
Today, after repositioning the two remaining assets, AG Real Estate's decision to sell its shares is in line with its objectives set out in 2013.
A positive final result
Throughout the project, AG Real Estate's involvement in the DTH project focused on a number of areas, including the acquisition of a stake via AGRE Westinvest SA and the granting of various subordinated loans via AGRE Westloan SA and AG Insurance SA directly. Taken as a whole, this partnership will have resulted in a positive overall IRR.
Serge Fautré, CEO of AG Real Estate, comments: ‘Although this investment did not generate the usual return on our investments, we are pleased to have recovered all of our exposure, even making a small profit. Like all property investors and developers, we continue to undertake bold projects to diversify our portfolio. In addition, our involvement in the rehabilitation of assets held by DTH has had a positive impact on the New York real estate landscape."
AG Real Estate will continue to engage in strategic investments in Europe, with a particular focus on sustainable and innovative projects.
