Blackstone Group to pay US$1.3 billion for former Sears Tower in Chicago

The Blackstone Group has agreed to buy Chicago's Willis Tower, the former Sears Tower that for 25 years was the world's largest building, in a deal that features an observation deck as a tourist attraction and unique revenue stream.

The acquisition was valued at US$1.3 billion (HK$10 billion), making it the highest price paid for a US office tower outside New York, according to financial information website MarketWatch, which first reported the news on Monday.

The 110-storey Willis Tower at 233 South Wacker Drive is the second-tallest US office building with 3.8 million square feet of space, Blackstone said in a news release, and the 10th-tallest office building in the world.

"From a risk-adjusted return basis, it's very attractive, especially with what's going on in other market places," said Ken Riggs, president of Situs RERC, which does valuations of commercial property.

Blackstone agreed to buy the property, which features a top Chicago tourist attraction in the Skydeck on the 103rd floor, from New York investors Joseph Chetrit and Joseph Moinian and American Landmark Properties.