Bank of China contributes to a $900 million USD syndicated loan for the 280 Park Avenue 2016 Refinancing Project

Project narrative

On May 11, 2016, a syndicate of three banks — the Bank of China (BOC), Deutsche Bank (as leader), and ING Real Estate Finance — entered into a $900,000,000 USD syndicated senior mortgage loan agreement with an unspecified special purpose vehicle (SPV) — a joint venture of SL Green Realty Corp., a Maryland-incorporated New York Stock Exchange-listed real estate investment trust focused on Manhattan and Manhattan's largest office landlord (50.0% equity stake) and Vornado Realty L.P., a Delaware-incorporated limited partnership supermajority-owned by its general partner Vornado Realty Trust, a Maryland-incorporated real estate investment trust headquartered in New York City and listed on the New York Stock Exchange (50.0% equity stake) — for the 280 Park Avenue 2016 Refinancing Project. This loan carried a maturity period of three years with four one-year extension options, a final maturity date of June 2019, and was interest-only, with an interest rate based on LIBOR plus a margin of 2.0%. This loan was secured by (i.e. collateralized against) a mortgage on 280 Park Avenue. The proceeds were to be used by the borrower to replace (refinance) $721.0 million USD of existing indebtedness on 280 Park Avenue maturing in June 2016. 280 Park Avenue is a 1,249,000 square foot two-tower office complex consisting of a 31-story building and a 43-story building connected by a low-rise structure located on the west side of Park Avenue between East 48th and East 49th Streets in midtown Manhattan, New York City, New York. An undisclosed portion of the $900 million USD was planned to be syndicated. In August 2017, Deutsche Bank entered into a $1.2 billion USD with the SPV ownership to refinance the $900 million USD syndicated loan.