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Vornado ups Bank of China loan on 220 CPS to $950M
REIT takes out additional $350M in financing from state-owned commercial bank
Vornado Realty Trust upsized the development loan on its 220 Central Park South condo tower from the Bank of China, receiving an additional $350 million to take its borrowing to $950 million, the real estate investment trust announced Monday.
While increasing the size of its loan from the state-owned Chinese commercial bank, Vornado also terminated its standby commitment for a $500 million mezzanine loan for 220 Central Park South by paying a $15 million contractual termination fee, the REIT said.
The interest rate on the $950 million loan is LIBOR plus 2 percent, with the final maturity date in 2020. Vornado previously secured $600 million in financing for the Midtown skyscraper from the Bank of China last year – one of several loans the bank has provided local developers in recent years.
Vornado is targeting a total sellout of $2.84 billion at the building, with CEO Steve Roth saying earlier this year that 220 Central Park South had received more than $1.1 billion in commitments from buyers within the first six weeks of sales. The REIT originally targeted a sellout of $2.4 billion at the property.
Vornado was reportedly in negotiations last year with the sovereign wealth fund of Qatar to line up hundreds of millions of dollars in financing for the 117-unit, Robert A.M. Stern-designed development, which will feature a 69-story limestone tower and an adjacent 14-story villa. – Rey Mashayekhi