Saudi Arabia’s Public Investment Fund (PIF) has taken a significant step into the New York City commercial real estate market by acquiring a two-thirds stake in a $1 billion office tower project in Midtown Manhattan. The deal is a partnership with Related Cos., with the PIF investing approximately $200 million in the project. The prime location, one block from Central Park, will feature a 1,200-foot office tower, expected to become a key addition to the city’s skyline.
This move signals a strong recovery for NYC’s commercial real estate sector, which is bouncing back from the pandemic’s disruptions and the challenges posed by rising interest rates. Office leasing activity in Manhattan has now surpassed pre-pandemic levels, and foreign investments in commercial properties are on the rise, with foreign purchases in the city already exceeding $2.1 billion in the past six months—five times the amount seen just two years ago.
The PIF’s partnership with Related Cos. builds on their ongoing collaboration, which began in 2020, and reflects a broader trend of foreign capital flowing back into major U.S. cities like New York. This investment is part of the PIF’s wider strategy to diversify its global holdings, which already include stakes in luxury brands such as Selfridges, Aman, and Rocco Forte. With its vast $1 trillion in assets, the PIF continues to expand its global portfolio, including high-profile real estate projects that reflect its long-term growth ambitions.
This development further solidifies the Saudi wealth fund’s position in global markets, offering a clear signal of its confidence in the future of New York’s commercial real estate and the broader U.S. economy.
