The Public Investment Fund (PIF) is partnering with New York developer Related Cos. to build a skyscraper in Manhattan, one block away from Central Park, unnamed sources told the Wall Street Journal. The planned 1.2k-ft tower is expected to cost more than USD 1 bn to develop, with the PIF contributing roughly USD 200 mn so far to secure a two-thirds stake in the site.

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Office or… something else? While the original blueprint envisioned a mix of residential, hotel, and retail uses, Related is now leaning toward developing the tower primarily as an office space, driven by renewed demand for premium commercial real estate in the city, the sources said.

New York’s property market is on the rebound: NYC rents have hit record highs and foreign investor activity has picked up sharply. Overseas buyers acquired more than USD 2.1 bn in Manhattan commercial real estate between 4Q 2024 and 1Q 2025 — 5x the level from the same stretch two years ago.

Interesting timing: The investment comes amid a broader strategy by the sovereign fund to dial back its international exposure to 18-20%, down from 30%. Local investments made up 40% of the PIF’s total deployments in 1H 2025, with the total assets under management rising 18% y-o-y to SAR 4.3 tn in 2024.

The PIF has history with Related, having made a convertible debt investment in 2020 that could give it a 15% equity stake. The two have also partnered on multiple US real estate projects since then.

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