Rithm Capital To Buy Paramount Group For $1.6 Bln Cash; PGRE Stock Down Over 11% In Pre-Market

(RTTNews) - Rithm Capital Corporation (RITM), an alternative asset manager, said on Wednesday that it has inked a deal to acquire Paramount Group, Inc. (PGRE), a real estate investment trust, for around $1.6 billion in cash, or at $6.60 per PGRE share. 

Rithm expects to fund the transaction with a combination of cash and liquidity and potential opportunities from co-investors. The acquisition is expected to be closed in the late fourth quarter of 2025.

Michael Nierenberg, CEO of Rithm, said: "We believe the acquisition of Paramount is a generational opportunity that will serve as a springboard to build out our commercial real estate and asset management platform and expands our owner-operator model."

Paramount's portfolio includes 13 owned and 4 managed high quality office assets, totaling over 13.1 million square feet, 85.4% of which is currently leased as of June 30.

PGRE was down by 11.52% at $6.53 in the pre-market trade on the New York Stock Exchange.