A Singapore real-estate family and a group of Asian banks are in
advanced discussions with developer Hines to revive a stalled
luxury condo development next to Manhattan's Museum of Modern Art,
according to people familiar with the negotiations.
The Kwee family is considering a $300 million equity investment
in the metal and glass tower designed by Pritzker prize winner Jean
Nouvel. Singapore's United Overseas Bank and other lenders are in
discussions to make up to $800 million in construction loans, these
people said.
Representatives for Hines, the Kwee family and United Overseas
Bank declined to comment.
An agreement with the Asian group would breathe new life into a
highly anticipated project that was shelved when the downturn hit.
In 2007, Hines unveiled plans for the building connected to the
museum.
But the tapering tower had been largely stuck in limbo until
talks began several months ago with the Asian investors. Known as
Tower Verre, the building located next to the museum is slated to
include additional museum gallery space at the base. Most of the
rest would be luxury condos.
Hines acquired the lot next to the museum for $125 million in
2007 and agreed to a mixed-use building. Later that year, the
Houston-based developer unveiled a 1,250-foot-tall tower that was
high enough to see eye-to-eye with the roof of the Empire State
Building, and included the possibility of a five-star hotel.
The economic downturn slowed the project's progress, and it
suffered another setback in 2009 when the New York City Planning
Commission instructed the developers to reduce the height by 200
feet. Mr. Nouvel offered a new, shorter design that won city
approval, but the project remained stalled while Hines looked for
financing in a difficult market for large construction
projects.
Talks with the Kwee family and Asian banks began last year, say
people with knowledge of the discussions. The family is one of the
wealthiest in Singapore and one of the city-state's largest
landlords. It owns Pontiac Land, a privately held developer and
hotel operator. Forbes recently put the Kwee family wealth at $4.6
billion.
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