COHEN & STEERS, INC. Makes Strategic Reduction in Paramount Group Inc Stake

Cohen & Steers reduced its stake in Paramount Group Inc by 59.16%, selling 11.2 million shares at $6.54 per share. The move reflects a shift in the firm's investment strategy for the real estate investment trust, which specializes in Class A office properties. Despite the reduction, Cohen & Steers still holds 7.8 million shares, accounting for 3.51% of its total holdings in PGRE.

Cohen & Steers, Inc. (NYSE: CNS) has significantly reduced its stake in Paramount Group Inc. by 59.16%, selling 11.2 million shares at $6.54 per share. This move reflects a strategic shift in the firm's investment strategy for the real estate investment trust, which specializes in Class A office properties. Despite the reduction, Cohen & Steers still holds 7.8 million shares, accounting for 3.51% of its total holdings in PGRE.

The sale comes as One Market Plaza, a 1.6 million-square-foot office complex owned by Paramount Group and Blackstone, faces a looming loan maturity. The $850 million loan is set to mature in February 2026, and the occupancy rate at One Market Plaza has fallen to 67% as of June, with major tenants like Google, Morgan Lewis & Bockius, and Visa either having left or planning to leave, potentially leading to an occupancy rate below 50%, according to The Real Deal.

The reduction in Cohen & Steers' stake in Paramount Group Inc. coincides with the company's focus on diversifying its investment portfolio. Cohen & Steers recently announced a collaboration with DBS to provide access to the Cohen & Steers Diversified Real Assets Fund, according to Yahoo Finance. This fund is designed to deliver attractive total returns while maximizing real returns during inflationary environments, investing across four core real asset categories – global real estate, global natural resources, global listed infrastructure, and commodities.

The strategic shift in Cohen & Steers' investment strategy is aimed at mitigating risks and enhancing portfolio resilience in a volatile market environment. The firm's decision to reduce its stake in Paramount Group Inc. reflects its ongoing efforts to realign its portfolio with its long-term investment goals and risk management strategies.