Aegon has completed the sale of the Pyramid building complex in San Francisco, California, for USD 650 million, while retaining the naming rights.
Transamerica, Aegon's business in the United States, has sold the Pyramid building complex which includes the Pyramid, 505 Sansome, the Redwood Park and other properties in the block bounded by Montgomery Street, Clay Street, Washington Street, and Sansome Street in San Francisco, to a joint venture led by Michael Shvo. Transamerica will continue to use the Pyramid as its logo and trademark. Transamerica will provide a mortgage loan supporting the property at commercial rates. The transaction will allow for a further diversification of the investment portfolio at favorable yields, therewith improving the risk profile of the Group.
"I am pleased that we have taken another step to strengthen our balance sheet with the sale of the Pyramid building complex", commented Lard Friese, CEO of Aegon. "Transamerica built the property and has owned it since construction was completed in 1972. I am proud that we will continue to be associated with this landmark as we have retained the naming and branding rights."
The sale further strengthens the company's balance sheet and is expected to lead to statutory capital benefits of USD 390 million. This is mainly the result of a realized gain on the sale, and the release of the associated required capital. The majority of the capital benefit is intended to be upstreamed to the intermediate US holding, which will use it to reduce affiliate notes with the US life insurance companies. The sale is expected to lead to an increase of the Group's Solvency II ratio by 4%-points.