Rithm Capital to acquire Paramount Group for $1.6B in cash

Rithm Capital (RITM) announced that it has entered into a definitive agreement to acquire Paramount Group (PGRE) for total cash consideration to Paramount shareholders of approximately $1.6B. Paramount’s portfolio includes 13 owned and 4 managed high quality office assets, totaling more than 13.1M square feet, 85.4% of which is currently leased as of June 30. Under the terms of the agreement, which has been approved by the boards of directors of both companies, Rithm will acquire all of the outstanding shares of Paramount common stock for $6.60 per fully diluted share. Rithm expects to fund the transaction with a combination of cash and liquidity from Rithm’s balance sheet and potential opportunities from co-investors. The addition of the Paramount portfolio will create new opportunities for investors to access Rithm’s real estate platform and bolster Rithm’s asset management business. The transaction is expected to close in late Q4, subject to customary closing conditions, including the approval of Paramount’s common stockholders.