It’s official: foreign money is flowing back into Manhattan, and it’s coming with skyscraper-sized ambition.
Saudi Arabia’s Public Investment Fund (PIF) is taking a two-thirds stake in a prime site just one block from Central Park, teaming up with local heavyweight Related Companies to build a 1,200-foot tower in the heart of the city.
The site was snapped up for over US$600 million last year, according to WSJ, and now plans are taking shape for a project expected to top US$1 billion in total costs.
While the Saudis haven’t finalised their full investment, they’ve already chipped in US$200 million, according to insiders.
Not a bad down payment for a slice of Manhattan sky.
Originally pitched as a swanky mix of residential, retail and hotel offerings, Related is now eyeing a premium office tower instead, tapping into increasing demand for top-tier commercial space as New York’s business districts spring back to life.
And they’re not alone. Foreign investors poured more than US$2.1 billion into Manhattan commercial property across late 2024 and early 2025 – five times what we saw just two years ago.
“Virtually every deal we’re seeing involves foreign capital,” Eastdil Secured CEO Roy March told WSJ, whose firm has US$12 billion worth of NYC real estate transactions already this year.
Manhattan office leasing is also roaring back, surpassing some pre-pandemic years in volume.
And it’s not just the offices, apartment rents have hit record highs, tourists are flooding back, and even the mayoral race is heating up, with rent-freeze advocate Zohran Mamdani winning the Democratic primary.
For the Saudi fund, this marks another step into the global property spotlight.
Once focused mainly on megaprojects at home, PIF now holds a 40% stake in Selfridges, a 49% share of Rocco Forte Hotels, and co-invested US$900 million in Aman Resorts.
