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

REIT sold minority stake in property in April

New York /
Jun.June 07, 2019 07:02 PM
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Vornado Realty Trust landed $500 million from the Bank of China for three of its retail properties, including 640 Fifth Avenue.

In April, the real estate investment trust sold a minority stake in its Fifth Avenue and Times Square retail portfolio— which includes the office and retail tower at 640 Fifth — in a deal that valued the assets at about $5.6 billion. Vornado transferred 45.4 percent common equity interest in the portfolio to a joint venture led by Crown Acquisitions consisting of sovereign wealth and pension funds, including the Qatar Investment Authority.

At the time, Vornado said it would retain a 58 percent stake in the portfolio, or $2.8 billon worth of common equity. Though the $500 million, five-year loan was announced at the time of the sale, the lender hasn’t been previously reported. At the time, the Commercial Observer reported that Vornado was expecting a $500 million loan to refinance 640 Fifth Avenue. Property records show the loan also involves two adjacent buildings, 6 West 52nd Street and 650 Fifth Avenue. Previous debt issued on the properties wasn’t immediately clear from public records.

Representatives for Vornado weren’t immediately available to comment on the deal.

Crown Acquisitions advised on the sale of Vornado’s minority stake. The company’s principal, Haim Chera, joined Vornado as its head of retail around the same time the deal was announced.


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
Vornado CEO Steve Roth with 220 Central Park South and 689 Fifth Avenue (Credit: Getty Images and Vornado)

After busy start to 2019, Vornado’s Roth says “we’re not done yet”

After busy start to 2019, Vornado’s Roth says “we’re not done yet”
258 8th Avenue (Google, Target)

Target planning yet another NYC store in Chelsea

Target planning yet another NYC store in Chelsea
Churchill Real Estate's Justin Ehrlich and 381 Broadway (Google Maps)

Two-year Tribeca foreclosure saga continues with lawsuit over $20M

Two-year Tribeca foreclosure saga continues with lawsuit over $20M
Adam America's Omri Sachs and Dvir Cohen with 2503-2509 Broadway (Google Maps; Adam America)

Adam America secures $63M in financing for Upper West Side project

Adam America secures $63M in financing for Upper West Side project
Convene CEO Ryan Simonetti (Convene)

Convene closes Manhattan locations as corporate events fail to return

Convene closes Manhattan locations as corporate events fail to return
New York City District Council of Carpenters’s Monitor Glen McGorty (iStock; LinkedIn)

NYC carpenters union changes how it roots out mob ties

NYC carpenters union changes how it roots out mob ties
arrow_forward_ios

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

Loading...