Midtown-based office landlord the Paramount Group plans to raise $2.5 billion in an initial public offering, making it the all-time largest for a real estate investment trust.
If that amount is raised in the stock sale, it would surpass fellow REIT Douglas Emmett’s $1.4 billion offering in 2006. The Paramount Group’s New York portfolio, Which Includes 712 Fifth Avenue, makes up 76 percent of the firm’s total annualized rent. The landlord, led by president and CEO Albert Behler, owns or has stakes in 12 properties in the U.S.
A price range for the IPO — or the number of shares to be issued — was not provided. Morgan Stanley, Wells Fargo and Bank of America are serving as underwriters on the offering, according to Bloomberg News.
Earlier this year, Paramount booked up about 200,000 square feet in new or renewed lease deals at 1325 Sixth Avenue, as previously reported. [Bloomberg News] — Mark Maurer