China-based retail developer Soho China has agreed to invest between $500 million and $700 million with Vornado Realty Trust to kick-start development of an office tower over the Port Authority Bus Terminal, Crain’s reported. With a deal giving Vornado and partner Lawrence Ruben the rights to build over the terminal set to expire next month, the partners are at a critical juncture in negotiations with the Port Authority of New York & New Jersey, the site’s owner.
Vornado and Ruben were selected by the Port Authority to develop the tower in 2000 but the project has been delayed multiple times as a result of the economic downturn, Crain’s said. An extension of the deal was granted last year.
Despite such a cash injection from Soho China, the project may still require some funding from Port Authority to get off the ground. Vornado has indicated that it would be willing to proceed with the project without a major tenant locked in.
The investment appears to mark Soho China’s first foray into the United States’ real estate market. [Crain’s]