Skip to content
AidData logo

Overview

Bank of China provides $350 million USD to up-size a $600 million USD loan to Vornado Realty Trust for the 220 Central Park South Development Project (Linked to Record ID#106469 and #106470)

Commitments (Constant USD, 2023)$366,169,433
Commitment Year•2015Country of Activity•United StatesDirect Recipient Country of Incorporation•United StatesSector•Business And Other ServicesFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Sep 22, 2015
Start (actual)
Jan 1, 2014
End (actual)
Dec 31, 2020
Last repayment (originally scheduled)
Jan 31, 2020

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

Loading map…

The proceeds were to be used by the borrower to finance the construction of 220 Central Park South, a luxury residential condominium development consisting of a 83-unit 69-story limestone tower and an adjacent 10-unit 14-story villa located on four lots (217, 225, 229 and 231 West 58th Street) along Central Park South in midtown Manhattan, New York City, New York. More detailed locational information can be found at https://www.openstreetmap.org/way/303603809

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)

Receiving agencies

Private Sector

  • Vornado Realty Trust

Implementing agencies

Private Sector

  • Robert A.M. Stern Architects, LLP
  • SLCE Architects, LLP

Loan desecription

Bank of China provides $350 million USD to up-size a $600 million USD loan to Vornado Realty Trust for the 220 Central Park South Development Project

Interest rate (t₀)•2.52725%Interest type•Variable Interest RateMaturity•4.362 years

Collateral

This loan was secured by the 220 Central Park South development site. 220 Central Park South was a luxury residential condominium development consisting of a 83-unit 69-story limestone tower and an adjacent 10-unit 14-story villa located on four lots (217, 225, 229 and 231 West 58th Street) along Central Park South in midtown Manhattan, New York City, New York.

Narrative

Full Description

Project narrative

On January 31, 2014, the Bank of China (BOC) entered into a $600,000,000 USD loan agreement with Vornado Realty Trust — a Maryland-incorporated real estate investment trust headquartered in New York City and listed on the New York Stock Exchange — for the 220 Central Park South Development Project. This loan carried a maturity period of two years and a final maturity date of January 2016, albeit with three one-year extension options, and an interest rate based on LIBOR plus a margin of 2.75% at signing. This loan was secured by (i.e. collateralized against) the 220 Central Park South development site on four lots: 217, 225, 229 and 231 West 58th Street. Record ID#106469 captures the original loan. On September 22, 2015, the BOC entered into an amendment agreement with the borrower for the $600 million USD loan; in the amendment, the maturity period was increased by four years — for a new final maturity date in 2020 — and the interest rate margin was reduced by 0.75% to 2.00% plus LIBOR. Additionally, BOC up-sized the loan by $350,000,000 USD to $950,000,000 USD. Record ID#106470 captures the debt rescheduling of the $600 million USD portion. Record ID#106471 captures the $350 million USD up-sizing. The proceeds were to be used by the borrower to finance the construction of 220 Central Park South, a luxury residential condominium development consisting of a 83-unit 69-story limestone tower and an adjacent 10-unit 14-story villa located on four lots (217, 225, 229 and 231 West 58th Street) along Central Park South in midtown Manhattan, New York City, New York. The project had a $1 billion USD cost, with Vornado initially planning for a $2.4 billion USD sellout of the condos at the property before increasing its target to $2.84 billion USD. In May 2016, Vornado listed a four-floor apartment at 220 Central Park South for a record-breaking $250 million USD. Vornado had purchased the development site in 2005 for $132 million USD, bought out the 26 rent-regulated tenants in the existing structure, which it then sought to demolish, but was delayed by rival developer Extell Development's refusal to end its lease for the parking garage beneath the building, which it finally acquiesced to in October 2013 for $194 million USD, allowing the existing structure to be demolished. Robert A.M. Stern Architects, LLP was responsible for the design of the project. SLCE Architects served as the executive architect. Construction began sometime in 2014. Construction completed in December 2020. In July 2019, Vornado repaid the $950 million USD BOC debt using proceeds generated by sales of condos at the project.

Staff comments

1. It is plausible, if not likely, that the specific intended borrowing institution was a special purpose vehicle subsidiary of Vornado Realty Trust. This issue merits further investigation. 2. AidData has coded 4.362 years as the maturity period as it assumes that the maturity period in 2020 was the same as the maturity date in 2016 of the original loan (i.e. January), and 4.362 years represents January 2020.