Saudi Arabia’s Public Investment Fund (PIF) has acquired a two-thirds stake in a prime Manhattan development site, marking a significant move into the U.S. commercial real estate market. The site, located at 625 Madison Avenue, is earmarked for a 1,200-foot skyscraper near Central Park. Partnering with New York-based developer Related Companies, the project’s total investment is anticipated to exceed $1 billion.
PIF has already invested approximately $200 million into the project, though the final contribution is still under negotiation. The site was purchased last year for more than $600 million. Initially planned as a mixed-use development with residential, retail, and hotel components, the project is now leaning towards an office building to meet the rising demand for premium workspace in Manhattan.
This investment signifies a renewed foreign interest in New York City’s recovering real estate market. After a slowdown during the pandemic and subsequent economic uncertainty, foreign investors are returning as office leasing rebounds and apartment rents hit record highs. In the first half of the year, Manhattan office leasing activity outpaced three of the four years before the pandemic, with a total of 15.8 million square feet leased—a 14% increase from last year.
PIF’s move into Manhattan real estate is part of its broader strategy to diversify its portfolio and expand its global presence. Traditionally focused on domestic megaprojects, PIF has been increasingly investing in high-profile international real estate. Its global ventures include stakes in the UK’s Selfridges department store group and upscale hotel chains Aman and Rocco Forte.
The fund has a close relationship with Related Companies, best known for its Hudson Yards development on Manhattan’s west side. In 2020, PIF made a debt investment in Related that is convertible into a 15% equity stake. Since then, the two have collaborated on various projects, including the proposed skyscraper at 625 Madison Avenue.
This partnership highlights the return of foreign investors to New York City’s commercial real estate market. Foreign investors purchased more than $2.1 billion of Manhattan commercial property in the first quarter of … a fivefold increase from the same period two years earlier.
The surge in foreign investment is facilitated by firms like Eastdil Secured, a real estate brokerage and investment bank that has $12 billion worth of estate deals completed or underway in 2025. “Virtually every one of said Eastdil Secured’s Chief Executive Roy March.
PIF’s investment in the Manhattan skyscraper project underscores Saudi Arabia’s commitment to expanding its global footprint and diversifying its economy beyond oil revenues. As part of its Vision 2030 initiative, the fund aims to build a rich investment portfolio across diverse sectors in Saudi Arabia and beyond.
With this significant stake in a landmark New York City development, PIF is positioning itself as a major player in the global real estate market, reflecting a strategic shift towards high-profile international investments.