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Time Warner shifts headquarters in property sale

Adam Jeffery | CNBC

Time Warner will relocate its Manhattan corporate headquarters to the Hudson Yards development from Columbus Circle in a move to bring operations under one roof and cut costs, the company said on Thursday.

The media conglomerate that includes HBO and Warner Bros said it sold the space it owns in the Time Warner Center at Columbus Circle for $1.3 billion to real estate company Related Companies, an entity owned by the Abu Dhabi Investment Authority (ADIA) and fund management company GIC.

Time Warner will lease the office space at Columbus Circle until early 2019. Additionally, the media company made an undisclosed financial commitment to Related Companies and Oxford Properties Group, the developers behind the Hudson Yards, to relocate all of its divisions including HBO and CNN to the west side of Manhattan.

(Read more: Why American millionaires lag world in real estate)

"By consolidating our space to Hudson Yards...we will be able to reallocate substantial savings to our primary business,'' Jeff Bewkes, chief executive of Time Warner, said in a statement.

Time Warner currently owns or leases space in seven buildings.

It moved to Columbus Circle—a mix of office space, a shopping mall, condominiums, and the Mandarin Oriental Hotel—in 2004.

(Read more: Without rebirth, malls face extinction: Developer)

—By Reuters

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