Tishman Speyer, a real estate developer has inked a deal with pharmaceutical giant Pfizer and secured financing allowing it to push ahead with a $3.7 billion Hudson Yards tower project. The period of the lease that Pfizer has signed for 15 floors of the 65-story skyscraper is 20 years.
“In relocating our headquarters, we sought to provide our colleagues a modern, state-of-the-art headquarters that would foster greater collaboration and innovation in a vibrant neighborhood in Manhattan,” the chief operating officer of Pfizer, Albert Bourla, said in a statement.
Pfizer has indicated that it will be selling its current headquarters to David Werner, an investor, at a price of $360 million. The pharmaceutical giant will start relocating in 2022 but before it relocates it will lease the space back.
Part of the financing, $1.8 billion, was lent to Tishman by Blackstone Mortgage Trust. The remaining $1.9 billion will be financing using its own equity as well as from over a dozen other pension and institution funds as well as individual investors.
BIG-Bjarke Ingels Group designed the tower which will rise to 1,031 feet and possess terraces on every floor. The tower will ascend in a spiral fashion. Construction of the tower is expected to start this year in June and take four years to complete.
Pfizer has its roots in the city of New York where it was founded in 1849 as a chemicals company that used to operate in Brooklyn. It relocated to its current headquarters in 1961.
New skyscrapers that are being built in the yards have been attracting firms away from Midtown. These include firms such as JPMorgan Chase, Amazon and BlackRock.
Recurrent renal cell carcinoma
This comes in the wake of Pfizer shutting down the third phase trial of Inlyta, a treatment for patients suffering from recurrent renal cell carcinoma. Pfizer shut down the trail after getting advice from independent trial monitors. The largest drugmaker in the United States by sales was conducting the trial in collaboration with SFJ Pharmaceuticals, a privately-held firm based in California. The trial failed in its primary endpoint – demonstrating it could extend disease-free survival of patients.
Inlyta first received a greenlight from the Food and Drug Administration six years ago and was then approved in the European Union in 2013. Last year sales of Inlyta fell by 15% to hit a figure of $339 million. A readout of the trial will be made in the coming 12 months according to Pfizer.