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Overview

Bank of China contributes $225 million USD to a $675 million USD syndicated loan for the acquisition of Time Warner's office space at the Time Warner Center

Commitments (Constant USD, 2023)$230,749,466
Commitment Year•2014Country of Activity•United StatesDirect Recipient Country of Incorporation•UnknownSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 1, 2014
Start (actual)
Jan 16, 2014
End (actual)
Jan 16, 2014
Last repayment (originally scheduled)
Dec 31, 2018

Geospatial footprint

Map overview

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The proceeds were to be used by the borrower for its $1.3 billion USD acquisition of Time Warner Inc.'s 1.1 million-square foot office condominium space at the Time Warner Center (also known as One Columbus Circle) at the western edge of Columbus Circle in two blocks between West 58th and West 60 Streets, from Eighth Avenue to Columbus Avenue. in Manhattan, New York City, New York. The Time Warner Center is a two 55-story tower complex connected by a low-rise atrium, with Time Warner's office and studio spread over both buildings and the atrium; the rest of the complex is owned separately. More detailed locational information can be found at https://www.openstreetmap.org/way/167923911

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Cofinancing agencies

Private Sector

  • Deutsche Bank AG

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Unspecified Special Purpose Vehicle (Time Warner Center)

Loan description

Bank of China contributes $225 million USD to a $675 million USD syndicated loan for the acquisition of Time Warner's office space in 2014

Interest type•Variable Interest RateMaturity•5 years

Collateral

This loan was secured by a commercial mortgage-backed securities (CMBS) on Time Warner's office space at the Time Warner Center.

Narrative

Full Description

Project narrative

In January 2014, a two-bank syndicate — the Bank of China (BOC) and Deutsche Bank (as lead bank) — entered into a $675 million USD syndicated loan agreement with an unspecified special purpose vehicle (SPV) — a joint venture between American real estate firm Related Companies, L.P. (as leader), Singaporean sovereign wealth fund GIC Private Limited, and an unspecified entity owned by the Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund owned by the Emirate of Abu Dhabi — for the acquisition of Time Warner's office space at the Time Warner Center. This loan carried a maturity period of five years and an interest rate based on a floating rate. This loan was secured by (i.e. collateralized against) a commercial mortgage-backed securities (CMBS) on Time Warner's office space at the Time Warner Center. BOC contributed about one-third (~$225 million USD) to the loan syndicate, with Deutsche Bank providing the rest. The loan was then securitized. The proceeds were to be used by the borrower for its $1.3 billion USD acquisition of Time Warner Inc.'s 1.1 million-square foot office condominium space at the Time Warner Center (also known as One Columbus Circle) at the western edge of Columbus Circle in two blocks between West 58th and West 60 Streets, from Eighth Avenue to Columbus Avenue. in Manhattan, New York City, New York. The Time Warner Center is a mixed-use two 55-story tower complex connected by a low-rise atrium, with Time Warner's office and studio spread over both buildings and the atrium; the rest of the complex, namely 43,000 sf of retail space (The Shops at Columbus Circle and The Restaurant and Bar Collection), the 250-room Mandarin Oriental Hotel, and 225 luxury residential condos (One Central Park condominiums and The Residences at the Mandarin Oriental), are all separately owned. Related and AREA Property originally built the property in 2004 and sold the office portion to Time Warner, with this acquisition purchasing it back; Time Warner agreed to lease the space for five years.

Staff comments

1. CMBS loans, which are also referred to as conduit loans, are a type of real estate loan that is secured by a first position mortgage on a commercial property. CMBS loans are typically offered by commercial banks, conduit lenders, or investment banks, and, once they are issued, they are packaged and sold to other investors. Due to that fact that banks do not hold CMBS loans on their balance sheets, they can offer these loans to borrowers at relatively low fixed interest rates, and can also offer borrowers relatively high leverage.