(Reuters) - Global asset management company Rithm Capital on Wednesday said it had agreed to acquire real estate investment trust Paramount Group ( PGRE ) for $1.6 billion in cash.

Rithm will acquire all outstanding shares of Paramount for $6.60 per share, the companies said. The deal is expected to close by the end of the fourth quarter.

Shares of Paramount fell 11% in premarket trading.

The New York City-based REIT owns and redevelops office properties in select central business district submarkets of New York City and San Francisco.