November 8, 2010

NEW YORK - Edge Fund Advisors and HSBC Alternative Investments Ltd. have grabbed a 49 percent stake in their first major New York property, the 907,427-square-foot 1540 Broadway in Midtown Manhattan. The minority interest was wrested from CB Richard Ellis Investors.

"As a trophy office building and the centerpiece of Times Square, this latest acquisition fits our strategy of investing in high-quality, stable office buildings in prime locations with credit-worthy tenants," said Christopher Allen, ECO of HSBC's private bank alternative investment division. "It also proves that we are witnessing a once in a lifetime buying opportunity for those investment managers that have the liquidity and global contacts." The acquisition was the third significant office investment in the past year for the Washington, D.C.-based Edge Fund.

The trophy, also known as the Bertelsmann Building, was completed in 1990 as the headquarters for international media giant, Bertelsmann AG. Today's tenant roster includes Viacom International Inc., Pillsbury Winthrop Shaw Pittman LLP and Chinese media giant, Xinhua News Agency. The 44-story building was designed by Skidmore, Owings & Merrill, with the office tower part of a condominium structure that includes retail, restaurant, garage and theater spaces.