08:35 AM EDT, 09/17/2025 (MT Newswires) -- Rithm Capital ( RITM ) said Wednesday it has entered into a definitive agreement to acquire real estate investment trust Paramount Group ( PGRE ) for $1.6 billion in cash.

Under terms of the agreement, Rithm will acquire all of the outstanding shares of Paramount Group ( PGRE ) stock for $6.60 per fully diluted share. The purchase will be funded with a mix of cash, liquidity from Rithm's balance sheet, and potential opportunities from co-investors, Rithm said.

Paramount Group's ( PGRE ) board has approved the deal, and the transaction is expected to close in late Q4, pending shareholder approval, the company added.

The acquisition will add 13 office assets to Rithm Capital's ( RITM ) portfolio, totaling 13.1 million square feet, 85.4% leased as of June 30, in New York City and San Francisco, the company said.

Shares of Ritm were up 0.8%, while Paramount Group's ( PGRE ) shares were down by nearly 12% in recent Wednesday premarket activity.