Paramount Group stock tumbles after Rithm Capital acquisition deal

Published 17/09/2025, 12:46
© Reuters.

Investing.com -- Paramount Group (NYSE:PGRE) stock plunged 12% following news that Rithm Capital Corp. (NYSE:RITM) will acquire the office property REIT in an all-cash transaction valued at approximately $1.6 billion.

Under the terms of the agreement, Rithm will pay $6.60 per fully diluted share for all outstanding Paramount common stock. The boards of both companies have approved the deal, which is expected to close in the fourth quarter of 2025.

The transaction remains subject to customary closing conditions, including approval from Paramount’s common stockholders.

The acquisition will add Paramount’s portfolio of Class A office properties in New York City and San Francisco to Rithm Capital’s holdings.

Paramount Group, a vertically-integrated real estate investment trust, specializes in owning, operating, managing, and redeveloping premium office properties in two of America’s most significant commercial real estate markets.

UBS Investment Bank and Citigroup Global Markets Inc. are serving as financial advisors to Rithm Capital, while BofA Securities is acting as exclusive financial advisor to Paramount and its Transaction Committee of independent directors.

BofA Securities has rendered an opinion that the transaction is fair to Paramount shareholders from a financial perspective.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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