Brookfield Property Partners (BPY) has completed $2.2
billion financings in two transactions.
The company announced it has borrowed $1.8 billion of total
debt to refinance its showpiece 67-story office tower One Manhattan West in New
York.
$1.5 billion of the mortgage debt was securitized and
distributed in the CMBS market, and $300 million was structured as mezzanine
debt.
The deal is one of the largest single-asset, single-borrower
CMBS transactions this year and was underwritten by Deutsche Bank’s German
American Capital Corp., Wells Fargo, Barclays Capital Real Estate, Citi Real
Estate and JPMorgan.
BPY also issued CAD$500 million in five-year medium-term notes at a fixed rate of 3.93 percent to for recently completed and future green projects.
“The strong interest in both of these transactions in
today’s environment is further evidence of investors’ support of BPY and their
belief in the long-term durability of high-quality real estate assets,” said
BPY CEO Brian Kingston.
The 70-story One Manhattan West is owned by a joint venture
of Brookfield Property Partners and the sovereign wealth fund of Qatar, and
operated by Brookfield Asset Management.
Designed by the architectural firm Skidmore, Owings &
Merrill, it is the second building completed for Brookfield’s Manhattan West
project, following the 2016 opening of Five Manhattan West (a renovation of the
former 450 West 33rd St. tower) where Amazon and JPMorgan are tenants.
One Manhattan West is 93.8 percent leased to tenants
including law firm Skadden, Arps, Slate, Meagher & Flom LLP (638,784 square
feet), accounting firm EY (636,416 square feet), Accenture (280,192 square feet
and the NHL (176,007 square feet).
