In the first syndicated Shariah-compliant construction financing in New York City, Malaysia’s biggest lender Malayan Banking (Maybank) has jointly led a consortium of lenders to provide funding totaling US$219 million for the development of a luxury residential tower in Manhattan.
The financing, announced on June 27, comprised of US$174 million senior construction loan and US$45 million mezzanine facility. Maybank was appointed joint lead arranger, along with Warba Bank of Kuwait for the syndication, which includes lenders Intesa Sanpaolo of Italy and an affiliate of MSD Partners LP of the US.
The financing is for the construction of Tribeca condominium tower, a 43-storey building to be developed by Soho Properties and located at 45 Park Place, Manhattan. Construction of the 665-foot tall glass and steel tower will commence in mid-2016 and is scheduled for completion in 2018.
“This syndication is a milestone being the first Shariah-compliant construction financing in New York and it reaffirms our ability to offer value-creating Islamic banking solutions for global clients,” Maybank’s group head of global banking Dato Amirul Feisal Wan Zahir says in a statement.
Warba Bank CEO Shaheen Al Ghanem expresses confidence in the economics of the deal and the strength of the submarket. “This deal goes perfectly in line with our prime objectives to extend the bank’s root to international promising vertical markets while diversifying its rich portfolio with topnotch projects,” he adds.
