New | Anbang to pay Kushners US$400 million for New York office tower
Coming a month before the Chinese and US presidents are scheduled to meet in Florida, this US$400 million deal puts Anbang in business with the in-laws of the American First Family.
A company owned by the family of Jared Kushner, President Donald Trump’s son-in-law and senior adviser, stands to receive more than US$400 million from a prominent Chinese company that is investing in the Kushners’ marquee Manhattan office tower at 666 Fifth Ave.
The planned US$4 billion transaction includes terms that some real estate experts consider unusually favourable for the Kushners. It provides them with both a sizable cash payout from Anbang Insurance Group for a property that has struggled financially and an equity stake in a new partnership.
The details of the agreement, which is being circulated to attract additional investors, were shared with Bloomberg. It would make business partners of Kushner Cos. and Anbang, whose murky links to the Chinese power structure have raised national security concerns over its U.S. investments. In the process, an existing mortgage owed by the Kushners will be slashed to about a fifth of its current amount.
The document offers a rare look at a major deal by a close Trump associate and family member. It’s unclear whether the deal could prompt federal review, as occurred when Anbang bought other properties, like the Waldorf Astoria Hotel in Manhattan. Anbang could also face review by the Chinese government, which has been clamping down on overseas investments and which has a range of pending issues with the Trump administration.
The proposed partnership is seeking additional participants through a controversial federal programme known as EB-5, which is intended for economically distressed neighbourhoods and provides residency permits to major foreign investors.
