Rithm Capital to Acquire Paramount Group for $1.6B
By Nicholas G. Miller
Rithm Capital agreed to acquire Paramount Group, a real estate investment trust with properties in New York City and San Francisco, for $1.6 billion.
The Wall Street Journal reported on Tuesday that Rithm was nearing a deal for Paramount.
Rithm, an alternative asset manager, will pay Paramount shareholders $6.60 a share and will fund the transaction with cash from its balance sheet and opportunities from co-investors.
"The Paramount portfolio is situated in cities where we have a strong conviction in the recovery of office market fundamentals, including improving rent rolls, a more favorable interest rate environment, and increasing demand," said Rithm Chief Executive Michael Nierenberg.
Paramount shares fell 11% to $6.55 in premarket trading. Rithm shares ticked up 0.25% to $12.10.
The transaction is expected to close in the fourth quarter.
Write to Nicholas G. Miller at nicholas.miller@wsj.com.