Narrative
Full Description
Project narrative
On May 23, 2019, the Bank of China (BOC) entered into a $500,000,000 USD mortgage loan agreement with an unspecified special purpose vehicle (SPV) — a joint venture of 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 (51.5% common interest) and a joint venture led by Crown Acquisitions, Inc. consisting of sovereign wealth and pension funds, including the Qatar Investment Authority (QIA) (48.5% common interest) — for the 640 and 650 Fifth Avenue 2019 Refinancing Project. This loan carried a maturity period of five years and a final maturity date of June 2019, was interest-only (i.e. a grace period of five years), and carried an interest rate of LIBOR plus 1.01%. Vornado Realty issued a guarantee for the loan. This loan was secured by (i.e. secured against) a mortgage on 640 Fifth Avenue. The proceeds were to be used for the redemption of our temporary preferred equity in the property, refinancing 640 Fifth Avenue, a 22-story 315,000 square foot Manhattan office and retail property, and two adjacent buildings, 6 West 52nd Street and 650 Fifth Avenue, in Manhattan, New York City, New York. The borrower swapped the interest rate for four years to a fixed rate of 3.07%. The interest rate was later changed from LIBOR to SOFR. In June 2024, a lender provided a $400 million USD loan to the borrower to repay and refinance the $500 million USD BOC loan.