Malayan Banking Bhd (Maybank) and other syndicate members have an exposure of RM500 mil to US property developer Park Place Development Primary LLC, according to a March 13 court filing to the New York state court.
Park Place, which counts American real estate developer Sharif Gamal among its beneficial interest holders, owes Maybank and other syndicate members US$117.14 mil (RM500.88 mil) as of Feb 29 this year, the court document said.
Park Place obtained financing of US$174 mil from the syndicate on April 26, 2016, to complete a development consisting of, among others, 50 residential condominium units in Manhattan’s upscale Tribeca neighbourhood.
But, according to the court document, Park Place failed to settle an outstanding US$108.39 mil as of April 26, 2019.
“The Borrower did not pay the Outstanding Amount within 10 days of receipt of the April 2019 Notice of Default… The Outstanding Amount as of February 29, 2020, is US$117,139,689.45 for both the Building Facility and Project Facility,” the court document said.
Aside from Maybank, which is Malaysia’s largest banking group by assets and market capitalisation, the other syndicate members consist of Italian banking group Intesa Sanpaolo SPA, Kuwait-based Islamic bank Warba Bank KSCP and 45 Park Place Investments LLC, a Delaware corporation.
Maybank and the rest are looking to foreclose the mortgages and receive related relief.
Bloomberg reported yesterday that Gamal had sued Maybank and other syndicate members for reneging on agreements to provide the loans thereby “effectively thwarting” the project.
In a court filing yesterday, Gamal said Maybank and other financiers “ignored and breached their obligations under the building facility and related loan documents.”
Their actions have caused “irreparable damage to the plaintiff’s relationship with its contractor, leading to a cessation of all work,” he was quoted as saying by Bloomberg.
Gamal is seeking an award of more than US$245 mil, which he says is the projected net sell-out value of the property located at 43-47 Park Place, two blocks north of the former World Trade Center site. – June 12, 2020
