It’s a big week for media companies and real estate. Yesterday Comcast announced a plan to build a $1.2B corporate campus in Philadelphia. Now Time Warner says that Related Companies, an entity owned by the Abu Dhabi Investment Authority, and GIC ponied up slightly more for the Time Warner Center at New York’s Columbus Circle, which opened in 2004. The deal is largely in line with what people expected in July when Time Warner agreed to move its NYC headquarters and operations, including CNN, to an 80-story skyscraper planned for the industrial Hudson Yards area around 10th Ave and 33rd St. The company will lease its current office space from Related until early 2019, and has made “an initial financial commitment” to Hudson Yards with plans to move there in late 2018. It will be “New York’s next great neighborhood,” CEO Jeff Bewkes says, and will enable Time Warner to “reallocate substantial savings to our primary business of creating and sharing great storytelling in television, film, and journalism with audiences around the world.” The company plans to take more than 1M square feet of office space there for about 5,000 employees in the corporate operations as well as HBO, Turner Broadcasting, and Warner Bros. Time Inc will go its own way after it separates from Time Warner this year. Bewkes said in 2011 that he wanted to review the media giant’s real estate holdings. Related is salivating over the opportunity to rent Time Warner’s current space which, it says, offers “two dedicated office lobbies, ceiling heights ranging from over 13 feet to 27 feet, flexible and efficient floor plans, unique terraces and panoramic views of Central Park.”
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