The Olayan Group is co-investing with a group of other leading firms in Related Companies, a major US property developer, it was announced on Dec. 17.

Commenting on the move, Anthony S. Fusco, The Olayan Group's US vice president for real estate, said, "This investment continues our organization's strategy of creating long-term alliances in all of our lines of business with strong, qualified, strategic partners. As a top developer and property manager in the US market, Related certainly fulfills that role."

Related’s press release on the multi-party transaction follows:

Related Companies Announces $1.4 Billion Investment by Elite Consortium

NEW YORK, Dec. 17 /PR Newswire/ -- Related Companies, one of the nation's leading private real estate development firms, today announced a nearly $1.4 billion equity and debt investment, the first outside investment in the company. Goldman Sachs and MSD Capital, LP have purchased equity stakes in Related totaling 7.5 percent. Three international entities will also invest through a debt placement, including an affiliate of Mubadala Development Company and The Olayan Group.

In addition to the corporate investment, each investor will co-invest in future development opportunities undertaken by Related. This elite group of investors has been specifically selected to fund future growth. The minority investment in Related includes no involvement in the governance of the company and there will be no change in Related's management structure.

"This is a historic transaction for Related which will enable us to write a new chapter of our growth. This carefully-selected, prestigious group of investors will allow us to reinforce our position as one of the nation's leading developers, managers and financiers of premier real estate properties," said Related Chairman and CEO Stephen M. Ross." In the last decade, the size, scope and geographic diversity of Related's development pipeline has increased dramatically with Time Warner Center and Moynihan Station in New York City, Grand Avenue in downtown Los Angeles, CityPlace in West Palm Beach, CityNorth in Phoenix and Snowmass Village in Colorado. As the industry continues to move toward bigger, more complicated development transactions, these new financial partnerships ensure that Related has a ready and deep source of capital to take advantage of virtually any opportunity regardless of size or scale."

Related President Jeff T. Blau said, "This access to new capital offers Related a tremendous competitive advantage. We are currently involved in some of the most ambitious real estate developments in the nation and are competing for a once-in-a-lifetime opportunity-to create a 26-acre, vibrant mixed-use waterfront neighborhood at the West Side Yards in New York City. This investment into our company is more than a financial arrangement. These long-term relationships will provide us with the financial flexibility to capitalize quickly on even the most challenging future opportunities. Above all else this show of confidence from the world's most elite investors is a testament to the strength of our team-a group of the brightest and most innovative and skilled employees, who are truly the best in the industry."

Related's current pipeline is comprised of marquee projects across the nation including: Grand Avenue, a multi-phase 3.6 million square foot, $3 billion development spanning three city blocks in downtown Los Angeles, California; the $3 billion, 80-acre Snowmass Village Resort development in Colorado; the 144-acre CityNorth mixed-use development in Phoenix, Arizona; and the development of the 7.5 million square foot Moynihan Station complex in New York City.

Stuart Rothenberg, Global Head of Real Estate Principal Investments at Goldman Sachs, said, "We're excited to make a strategic investment with a best-in-class developer and highly skilled management team. Related has a history of creating value and has developed some of the country's most financially successful projects."

Barry A. Sholem, Partner responsible for MSD Capital's Real Estate Group, said, "MSD Capital is pleased to make this equity investment in Related, which is led by one of the strongest management teams in the business. Related is developing some of the most exciting projects in the country, and we look forward to growing our partnership with them over the long term."

Khaldoon Khalifa Al Mubarak, Mubadala CEO and Managing Director, said, "Related is a strong fit for Mubadala. We share their approach to investing in premier projects that build long-term value. Related has great leadership and an impressive project pipeline with even more potential opportunities."

Anthony S. Fusco, The Olayan Group's U.S. vice president for real estate, said, "This investment continues our organization's strategy of creating long-term alliances in all of our lines of business with strong, qualified, strategic partners. As a top developer and property manager in the U.S. market, Related certainly fulfills that role."

Related was advised by a team that included Goldman Sachs, Deutsche Bank, and Eastdil Secured.

www.related.com