SL Green announced on Monday that it had sold the building at 245 Park Avenue to a U.S. subsidiary of Japanese real estate developer Mori Trust Co Ltd at a $2 billion valuation, sending its stock up nearly 20%.
The transaction is a "significant milestone" for SL Green given that it represents nearly half of the planned asset sales for 2023 and more than covers the company's share of redevelopment costs, said BTIG analysts, who reiterated their "buy" rating.
Analysts at Scotiabank, who rate SLG a "sector underperform", hiked their price target for the company's shares, calling the transaction "positive."
SL Green's stock jumped 11% on Tuesday to a high of $31.35 per share.
SL Green took control of 245 Park Avenue last year after lenders seized the building from HNA Group.
Persons:
Angelo Gordon, Chibuike Oguh, Lisa Shumaker
Organizations:
YORK, Green Realty, SL Green, Mori Trust, Barclays, Green, Scotiabank, Grand, Ares Management, Societe Generale, HNA Group, Thomson
Locations:
New York City, U.S, Manhattan, New York