Kushners, Brookfield Near Deal (with Qatar company) on Troubled 666 Fifth Ave., Sources Say

[Demovictory9]

https://www.bloomberg.com/news/articles/2018-05-17/kushners-brookfield-said-near-deal-on-troubled-666-fifth-avenue



Kushner Cos. is nearing a deal with a unit of Brookfield Asset Management Inc. to salvage its investment in an over-leveraged office tower, according to two people familiar with the talks.

The Qatar Investment Authority, which invests on behalf of Qatar’s government, is the largest outside investor in the unit, Brookfield Property Partners LP, according to data compiled by Bloomberg and company filings.


Kushner Cos. had earlier talked with a member of Qatar’s royal family about investing in the building, 666 Fifth Avenue, Bloomberg has previously reported. The family company has been trying for years to find a partner to save its investment in the 41-story building it bought for $1.8 billion in 2006, near the top of the real-estate boom. Recently Kushner Cos. has lost millions a year on the building due to low occupancy and high mortgage interest payments.

The deal would buy out the Kushners’ current partner, Vornado Realty Trust, which owns 49.5 percent of the building’s offices. Vornado would continue to own the building’s lucrative retail spaces. It isn’t immediately clear what would happen to a $1.2 billion mortgage that is due February 2019, or if Kushner Cos.’ ownership stake would shrink as a result of new funds.