Time Warner is believed to be in advanced talks about shifting its operations to New York’s Hudson Yards development. According to the FT the multinational media corporation is discussing selling its 80 storey Columbus Circle headquarters and taking over 1 million sq ft on the 26 acre site in Manhattan.
Although nothing has yet been finalised, it is thought that the move will cost Time Warner around $1 billion. However, it appears that a deal may hinge on Related – along with Oxford Properties the joint developer of Hudson Yards – buying Time Warner’s current office towers for an asking price of $1.3 billion.
Hudson Yards is the largest privately funded mixed use development currently under construction in the US. The site, previously occupied by derelict warehouses and railway buildings, will be transformed into a new district offering spectacular views over the Hudson River. It will provide office and retail space, culture and entertainment venues and residential accommodation.
There will also be open spaces linked directly to the High Line, the urban park built on an elevated freight track running above the streets of the West Side. When completed 30,000 people will work at Hudson Yards and it will be home to 10,000 residents.
Douglas Harmon, a broker advising Time Warner, said the company could take advantage of “a sweet moment in the New York commercial property market.”
“Time Warner is benefitting from a unique moment in the capital markets. It can simultaneously sell their trophy headquarters to a host of global, aggressive buyers, while leveraging its standing as a ‘game changer’ tenant to acquire or lease comparable new space with room for future expansion, all at bargain pricing,” he said.
If the deal goes ahead the developers will hope that Time Warner’s presence at Hudson Yards will attract other large companies to relocate to the site. Among those to have already made commitments are luxury retailer Coach, L’Oréal, and software firm SAP.
