China Vanke Cedes Control of Bush Tower to Lender

China Vanke is throwing in the ownership towel at Bush Tower in Midtown Manhattan, even as it retains management responsibilities.

The American affiliate of the Shenzhen-based property developer transferred ownership of 130 West 42nd Street to Singapore-based United Overseas Bank, Bisnow reported. The deal was valued at $58.1 million, according to property records.

United Overseas lent $120 million to Vanke in 2018, so the transfer appears to represent a steep drop in the value of the building. United Overseas did not respond to a request for comment.

“After working collaboratively with our lender, we have reached a mutually agreed outcome that we believe is in the best interests of all stakeholders,” said a spokesperson for Vanke.

United Overseas’ stewardship of the 29-story office building is not expected to be a permanent one, as the bank plans to sell the property. The transfer was first reported by PincusCo.

Vanke bought a majority stake in the 220,000-square-foot office building overlooking Bryant Park for $125 million back in 2015. It acquired that share from leaseholders Tribeca Associates and Meadow Partners, which paid $65 million to buy the ground lease in 2013; American Properties owns the land and Tribeca is still a partner at the 1918-built property.

In 2017, WeWork signed a lease for 64,000 square feet at the building. But during its bankruptcy restructuring, the co-working company cut the lease loose. Home care solutions company HHAeXchange also recently left the building.

Vanke has had its struggles since breaking into the United States market. Last year, its former chief executive officer was reportedly put under criminal suspicion by Chinese authorities, and the company was reported to be facing possible takeover by the government.

In 2023, the developer tapped Corcoran Sunshine to take over sales from Brown Harris Stevens at 100 West 53rd Street. The building was nearly 60 percent sold between closed and in-contract deals at the time, according to Corcoran Sunshine.

The development was marred by infighting between Vanke and its initial partner on the 63-story project, Aby Rosen.

— Holden Walter-Warner