April 1, 2019 / 7:07 PM / 6 months ago

AT&T's WarnerMedia close to selling Hudson Yards stake -source

NEW YORK, April 1 (Reuters) - A winning bidder has been selected for the sale of AT&T’s WarnerMedia unit’s stake in the second-tallest office building in Manhattan, a deal expected to top $2 billion, a source involved in the bidding said on Monday.

The winner, whose identity remains undisclosed, was chosen at the end of last week for WarnerMedia’s 1.5 million square feet (139,355 meters) of space at 30 Hudson Yards, the hub of the trendy development project on Manhattan’s far west side, the source said.

An announcement could come as early this week.

AT&T, looking to cut debt after last year’s $85 billion take over of Time Warner, plans to lease back the space, the source said.

AT&T declined to immediately comment. Doug Harmon, the broker at Cushman & Wakefield handling the transaction, declined to comment.

AT&T’s plans for a sale and leaseback deal surfaced in January and attracted pension funds, a sovereign wealth fund and real estate investment trusts. The losing bidders have been notified, the source said.

The office tower is the tallest building in Hudson Yards and has the highest outdoor observation deck in the Western Hemisphere jutting out from the 100th floor.

The $25 billion project, which officially opened last month, has been developed by Related Cos and Canada’s Oxford Properties.

Reporting by Herbert Lash Editing by Susan Thomas

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