(Bloomberg)—AT&T Inc.’s WarnerMedia agreed to sell space in a Manhattan tower for $2.2 billion to real estate giant Related Cos., helping the telecom giant pay debt.
WarnerMedia will lease back the offices -- located in the new Hudson Yards neighborhood -- until early 2034, AT&T said on Tuesday. The transaction is slated to close late in the second quarter.
AT&T is on a crusade to reduce debt since last year’s acquisition of Time Warner Inc. for $85 billion. The company had a $176.5 billion burden in its most recently reported quarter. The Dallas-based company plans to give its latest figures on Wednesday.
The space in Tuesday’s agreement is in 30 Hudson Yards, the third-tallest building in New York. Related is building the $25 billion Hudson Yards mega-project with Oxford Properties Group Inc., betting that the West Side neighborhood can become a new nexus of shopping, offices and apartment buildings.
Time Warner previously sold its headquarters at Time Warner Center in Columbus Circle for $1.3 billion to a group led by Related.
--With assistance from Lily Katz and Gillian Tan.To contact the reporter on this story: Nick Turner in Los Angeles at [email protected] To contact the editor responsible for this story: Nick Turner at [email protected]
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