DOHA: The First Investor QSCC (TFI) and Hines yesterday announced the closing of a JP Morgan-led bank syndication to provide construction financing for the landmark mixed-use CityCenterDC (CCDC) project that is currently under construction in downtown Washington, D C. The project is believed to be one of the largest downtown developments currently underway in the US.
TFI is the investment banking arm of Barwa Bank and Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide.
The JP Morgan-led syndication will provide $390m in Shariah compliant real estate construction financing for the project. The financing is among the largest such financing completed in the US. TFI was instrumental in structuring the transaction together with the TFI US Real Estate Fund’s CityCenterDC development partner Hines. CityCenterDC is the flagship investment of the fund, which was launched by TFI in 2010-11. In addition to managing the fund, TFI is co-investing alongside the fund’s anchor investor Qatari Diar, the real estate investment arm of the Qatar Investment Authority (QIA). The Fund is advised by Tanween, a leading Qatari company specialising in real estate development and project management.
Khaled Al Sayed, Group CEO of Qatari Diar Real Estate Company, said: “As anchor investor in the fund, we are delighted with the progress at the CityCenterDC project. The ambition, scale and profile of this development are commensurate with its status as Qatar’s first major real estate investment in the US of America. Progress on all key fronts is testament to the proven, world-class financial investment and development management capabilities of TFI, Tanween, and Hines.”
Khalid Al Subeai, CEO of TFI, said: “As Qatar’s first major real estate investment in the US, I am very pleased to note project construction remains on schedule with many high profile office and retail tenants coming onboard. Optimising our capital structure further adds value to our investors whose vision has made this great project a reality. The attractive financing terms offered by the JP Morgan-led syndicate are a further validation of the project’s profile and strong commercial merits.”
CityCenterDC is a unique, pedestrian-friendly, 8-acre mixed-use development, located in the heart of downtown Washington on a 4.5-block parcel bounded by New York Avenue, 9th, H and 11th Streets, NW. Master planned by architects Foster + Partners, it features the internationally respected real estate company Hines as master developer. CCDC will contain more than 185,000-square-feet of retail space situated at the base of seven buildings that encompass 525,000 square feet of office space, 458 rental apartment units, 216 luxury condominium units, a public park, a central plaza and pedestrian-oriented streets and alleyways.
Construction of the project commenced in March 2011 and it will be accepting initial residential occupants from the fourth quarter 2013 onward. The project has also secured a prestigious law firm as an 80 percent anchor tenant for its office space.
The Peninsula
