Korea firm Mastern Investment buys $290.6M stake in SL Green’s One Madison

The Korean alternative asset management firm Mastern Investment Management bought a 25.5 percent stake valued at $290.6 million in SL Green’s One Madison Avenue in Flatiron, city records revealed. This on top of the 49.5 percent stake SL Green sold to the National Pension Service of Korea and real estate developer Hines. SL Green disclosed the sale but not the buyer in a press release earlier this month.

SL Green is developing One Madison into a 1.4 million mixed-use office and retail building undergoing a complete renovation and expansion of the building.

The Commercial Observer reported in 2020 that the National Pension Service of Korea and Hines agreed to invest a total of $492.2 million which equated to a 49.5 percent stake, and that Hines would be a joint developer with SL Green. The article did not disclose the relative size in dollars or percent of their stakes, nor did it include the Mastern stake. According to the new Acris filings, National Pension service of Korea bought a 48 percent stake for $476.7 million, Mastern a 25.5 percent for $290.6 million and Hines a 1.5 percent for $15.5 million. That is a total of $782.8 million accounting for 75 percent. Mastern disclosed in March 2021 that its New York office was open.

The SL Green press release says the new buyer bought a 25 percent stake and SL Green retained a 25.5 percent stake. The Acris filings report Mastern bought a 25.5 percent stake which would result in SL Green retaining a 25 percent stake.

The National Pension Service of Korea made the investment through the entity Oma Junior Subsidary LLC which acquired the interest from SL Green Realty through the entity SLG Madison Investment LLC. Mastern Investment Management made the investment through the entity Mag One LLC, which acquired an interest from SL Green Realty through the entity One Park Realty Corp. Hines through the entity Hines One Madison LLC acquired an interest from SL Green Realty through the entity SLG Madison Investment LLC.

All three transactions were closed on November 29, 2021 and were recorded on December 17, 2021.

Direct link to Acris document. link