Vornado ups Bank of China loan on 220 CPS to $950M

REIT takes out additional $350M in financing from state-owned commercial bank

New York /
Sep.September 29, 2015 11:00 AM

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


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Free and clear: Vornado pays off debt at 220 CPS
Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
11 Penn Plaza and Apple CEO Tim Cook (VNO; Getty)

Apple snags more space at Vornado’s 11 Penn Plaza

Apple snags more space at Vornado’s 11 Penn Plaza
From left: 555 California Street in San Francisco, Vornado CEO Steven Roth and 1290 Sixth Avenue in Manhattan (Photos via Wikipedia Commons; Getty; Trump Org)

Vornado halts sale of office towers co-owned with Trump

Vornado halts sale of office towers co-owned with Trump
Clockwise from left: Ken Griffin, Michael Cantanucci, Albert Behler, Renata de Camargo Nascimento, Daniel Och and Sting and Trudie Styler

The stars and czars who’ve bought at 220 Central Park South

The stars and czars who’ve bought at 220 Central Park South
Steven Roth and 220 Central Park South, which has effectively created its own tier of the luxury market.

The inside story of the world’s most profitable condo

The inside story of the world’s most profitable condo
Clockwise from top left: Boston Properties' Owen Thomas; Empire Real Estate Trust's Tony Malkin; Equity Commonwealth's David Helfand; Columbia Property Trust's Nelson Mills; SL Green's Marc Holliday; Vornado Realty Trust's Steve Roth; and Brookfield's Brian Kingston (Getty)

Office unease: Tenants are paying up but staying away

Office unease: Tenants are paying up but staying away
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...