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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Paramount Confirms Receipt of Unsolicited, Non-Binding Proposal from Monarch Alternative Capital

Paramount Stockholders Do Not Need to Take Action at This Time

Paramount Group, Inc. (NYSE: PGRE) (“Paramount” or the “Company”) today confirmed that it has received an unsolicited, non-binding proposal from Monarch Alternative Capital LP to acquire all of the Company’s outstanding common stock for $12.00 per share in cash.

Consistent with its fiduciary duties and in consultation with its independent financial and legal advisors, the Paramount Board of Directors will carefully review the unsolicited proposal to determine the course of action that it believes is in the best interest of the Company and all Paramount stockholders. Paramount stockholders do not need to take any action at this time.

Paramount is entering 2022 with significant momentum following a strong 2021 operating performance that demonstrated the value of the Company’s portfolio of trophy, Class A assets, its high-quality tenant base and the benefit of its best-in-class operating platform. Paramount executed leases totaling more than one million square feet in 2021, representing 45% growth over the Company’s 2020 leasing performance. This includes leasing approximately 46% of the Company’s vacant square footage entering 2021. The Company accelerated progress in the fourth quarter, including achieving year-over-year leasing growth of 137% and driving mark-to-market on second generation space of 18.7% on a GAAP basis, underscoring the substantial opportunities to drive financial growth as the Company repositions assets to fit the needs of high-quality tenants.

As Paramount’s 2022 guidance demonstrates, the Board and management team are confident that the Company will continue to drive strong performance as market dynamics normalize throughout the year. Paramount is well positioned to leverage its strong financial profile and fully integrated operating platform to continue repositioning its assets and leasing up remaining vacancies at strong mark-to-markets to drive growth and enhance value for stockholders.

BofA Securities is acting as Paramount’s financial advisor and Goodwin Procter LLP is acting as legal counsel.

About Paramount Group, Inc.

Headquartered in New York City, Paramount Group, Inc. is a fully-integrated real estate investment trust that owns, operates, manages, acquires and redevelops high-quality, Class A office properties located in select central business district submarkets of New York City and San Francisco. Paramount is focused on maximizing the value of its portfolio by leveraging the sought-after locations of its assets and its proven property management capabilities to attract and retain high-quality tenants.

Forward Looking Statements

This press release may contain “forward-looking statements” within the meaning of the federal securities laws. Such statements are identified by use of the words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “projects,” “should,” and similar expressions that do not relate to historical matters. Any forward-looking statements contained herein are based on current expectations, but are subject to risks and uncertainties that could cause actual results to differ materially from those indicated, including, but not limited to, those risks and uncertainties detailed from time to time in Paramount’s filings with the U.S. Securities and Exchange Commission. Paramount does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contacts

Jon Keehner / Andrew Siegel

Joele Frank, Wilkinson Brimmer Katcher

212-355-4449

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