Public Investment Fund (PIF), Saudi Arabia’s sovereign wealth fund, is reportedly planning to take up to two-thirds stake in Related Company’s 1,200-foot tower at 625 Madison Avenue site in midtown Manhattan.
Bloomberg reported that PIF has already invested about US$200 million, according to people familiar with the matter but who did not want to be identified.
Related has a presence in the Middle East with an office in Abu Dhabi. Gulf Related is a joint venture between Gulf Capital and Related Companies. One of Gulf Related’s major development in the emirates is The Galleria Al Maryah.
Related is known for its work at Hudson Yards on the western side of Manhattan, where it helped develop office buildings, a hotel and retail space and has been weighing a plan to construct the Manhattan tower.
According to Bloomberg, the developer and PIF have long had ties, with PIF agreeing to make a debt investment in the company.
While PIF did not respond to a request for comment, Natalie Ravitz, a Related spokesperson, said the firm doesn’t discuss specific investor relationships and added: “625 Madison is a truly exceptional site with many possibilities, from mixed-use luxury residential, hotel and retail, to class AA office headquarters. It’s the heart of luxury corridor and will have iconic Central Park views. We’re very excited about it.”
