Monday, March 9, 2009
(L) Old Times Courtesy NY Times, (R) New Times Courtesy Media Bistro
In announcing a huge fourth quarter loss, Africa Israel has re-valued it's holding of the old New York Times Building on West 43rd Street by half. Bought just 2 years ago, Africa Israel now estimates the building to be worth $315 Million, compared to a $671 Million valuation a quarter earlier. As a result, the international developer/conglomerate will take a $380 Million charge.
In somewhat related news, The New York Times reports that it has raised $225 with a sale/leaseback arrangement with W.P. Carey and Company for its 58% stake in the building. The Times will be paying $24 Million/year in rent, which equates to a number in the low $30's psf, well below market. Additionally, The Times will have the option to buy it's building back in 10 years for $250 Million, an option widely believed to be exercised.