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RELATED, OXFORD CLOSE ON $1.4 BILLION DEBT AND EQUITY DEAL


(The following is a reformatted version of a press release issued by Related Companies and received via e-mail. The release was confirmed by the sender.)

April 10, 2013

RELATED COMPANIES AND OXFORD PROPERTIES GROUP CLOSE ON NEARLY $1.4 BILLION IN EQUITY AND DEBT INVESTMENTS FOR HUDSON YARDS

Prestigious Consortium of Investors and Lenders to Fund First Tower in The New Heart of New York

The South Tower, Home to Coach, Inc., L’Oréal USA and SAP, Already Under Construction and Slated for 2015 Occupancy

Related Companies and Oxford Properties Group today announced that they have closed on nearly $1.4 billion in equity investments and debt financing for Hudson Yards. A prestigious consortium of investors and lenders will fund the first tower in the development of Hudson Yards, the South Tower, which will be home to renowned fashion brand Coach, Inc. (NYSE: COH, SEHK: 6388), leading beauty company, L’Oréal USA, and market leader in enterprise software applications SAP (NYSE: SAP). Select investors are also making equity investments in a residential tower on 30th and 11th Avenue, which will be a hybrid rental and condominium tower.

The South Tower, a 1.7 million square foot commercial tower on the northwest corner of 30th Street and 10th Avenue is already under construction and the residential tower on the northeast corner of 30th Street and 11th Avenue is expected to commence construction in 2014. Equity investors in the first phase of the Hudson Yards include Coach, Inc., Related, Oxford, institutional investors advised by J.P. Morgan Asset Management, and a prominent sovereign wealth fund. Construction financing is being provided by a syndicate led by Starwood Property Trust, which includes member organizations of the United Brotherhood of Carpenters and Joiners, along with Oxford Properties Group.

Jeff T. Blau, CEO of Related Companies said, “The show of confidence from this elite group of investors and lenders is a testament to the strength of Related and Oxford and the compelling development we are creating at Hudson Yards. Together we are not just investing in buildings, but in the future of New York. Our diverse roster of global tenants, state-of-the-art infrastructure, grand public spaces and signature residential, retail and cultural amenities make Hudson Yards not only the new heart of New York but ensure it will be a vibrant destination day and night.”

Oxford Chief Executive Officer Blake Hutcheson said, “We are proud to stand in the distinguished company of those associated with Hudson Yards. Progress at Hudson Yards continues at a brisk place, and we are pleased to have this sophisticated group of investors participate in this remarkable project.”

Boyd Fellows, President and Director of Starwood Property Trust said, “We are thrilled to be involved is such an important and exciting project that will ultimately redefine Manhattan’s West Side. Providing customized financing solutions to world class sponsors, Related and Oxford, for developments like Hudson Yards showcases the competitive advantages of Starwood Property Trust created by our scale and expertise. We look forward to watching the project progress over the next several years.”

Hilary Spann, head of real estate acquisitions, Northeast, for J.P. Morgan Asset Management - Global Real Assets said, “Hudson Yards will transform the west side of Manhattan, and it is arguably the most important development underway in the country. We are very pleased to partner with Related Companies, Oxford Properties Group and this committed group of investors on such an exciting project.”

Douglas McCarron, General President of the United Brotherhood of Carpenters and Joiners said, “Our commitment to the Hudson Yards development is a win-win. Not only are we investing in a historic development which will redefine New York, but the 26-acre Hudson Yards project will be the largest private sector creator of union construction jobs, creating over 3,700 jobs for our members.”

The development of the Hudson Yards is the largest private development ever undertaken in New York City and will create a new center of commerce, culture and community. Its construction is expected to create nearly 23,000 construction jobs, and once completed, 40,000 people will work in, or call Hudson Yards their home. The office towers of Hudson Yards will be models of resiliency and sustainability with on site co-gen power, multiple utility feeds and daylight harvesting. Furthermore, the office floors will provide sweeping views with floor to ceiling glass, underfloor air and wire management, and enhanced stair and elevator capacity--all designed to provide the flexible, team based workspace that is becoming the hallmark of forward thinking companies. Along with extensive retail, health club, entertainment and dining amenities, commercial tenants will enjoy cost-effective space and increased productivity. As the cultural heart and business center of Manhattan continues to move south and west, Hudson Yards offers global business leaders an opportunity to relocate in New York City’s new hub of creativity and innovation.

The 26-acre site will accommodate over 13 million square feet, including more than 6 million square feet of commercial space. Building on the successful retail and restaurant programming Related developed in The Shops at Columbus Circle, Hudson Yards will be home to 750,000 square feet of destination retail space with 5 floors dedicated to premier shops, cinemas, specialty restaurants, markets and bars. Danny Meyer’s Union Square Events is expected to program a number of the spaces at Hudson Yards featuring dynamic culinary and hospitality offerings such as private dining spaces for tenants, unique signature events, catered affairs and open-air cafés.

Approximately 5,000 residences, a new school, and luxury hotel will offer unparalleled amenities for residents, employees and visitors. The new Hudson Park & Boulevard - a sweeping 4-acre thoroughfare running north from West 33rd Street, The High Line, The Hudson River Park and the public space to be created by on the Hudson Yards site will create an incomparable network of parks and public plazas that weave throughout Manhattan’s West Side, connecting Chelsea, Hudson Yards and the Times Square neighborhood. Plans are also underway to include a dramatic new cultural facility designed by Diller Scofidio + Renfro and David Rockwell. This unique facility, dubbed Culture Shed, will welcome a range of activities spanning the worlds of art, design and performance.

Related Companies is the most prominent privately-owned real estate firm in the United States. Formed 40 years ago, Related is a fully-integrated, highly diversified industry leader with experience in virtually every aspect of development, acquisitions, management, finance, marketing and sales. Headquartered in New York City, Related has offices and major developments in Boston, Chicago, Los Angeles, San Francisco, South Florida, Abu Dhabi, Sao Paulo and Shanghai and an existing portfolio of real estate assets, valued at over $15 billion, made up of best-in-class mixed-use, residential, retail, office and affordable properties. Related has developed preeminent mixed-use projects such as Time Warner Center in New York and CityPlace in West Palm Beach and is currently developing the 26-acre Hudson Yards project on Manhattan’s West Side. Related also manages over $1.5 billion of equity capital on behalf of sovereign wealth funds, public pension plans, multi-managers, endowments, Taft Hartley plans and family offices. For more information about Related Companies please visit www.related.com

Oxford Properties Group is a global platform for real estate investment, development and management, with over 1,400 employees and over $21 billion of real assets that it manages for itself and on behalf of its co-owners and investment partners. Established in 1960, Oxford has regional offices in Toronto, London and New York, and the company’s portfolio includes approximately 50 million square feet of office, retail, industrial, multi-family and hotel properties. Oxford is the real estate arm of the OMERS Worldwide Group of Companies.

Starwood Property Trust, Inc. is focused on originating, investing in, financing and managing commercial mortgage loans and other commercial real estate debt investments, commercial mortgage-backed securities, and other commercial real estate-related debt investments. The Company refers to commercial mortgage loans, other commercial real estate debt investments, CMBS, and other commercial real estate-related debt investments as the Company’s target assets. The Company also invests in residential mortgage-backed securities and residential real estate owned, and may invest in non-performing loans, commercial properties subject to net leases and residential mortgage loans. The Company is externally managed and advised by SPT Management, LLC, an affiliate of Starwood Capital Group, and has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.

J.P. Morgan Asset Management - Global Real Assets has approximately $64.8 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia, as of December 31, 2012. With a 40-plus-year history of successful investing, J.P. Morgan Asset Management - Global Real Assets’ broad capabilities provide many of the world’s most sophisticated investors with a global platform of real estate, infrastructure, maritime/transport and energy strategies driven by local investment talent with disciplined investment processes consistently implemented across asset types and regions.

The United Brotherhood of Carpenters is one of North America’s largest building-trades unions, with nearly a half-million members in the construction and wood-products industries. For more information on Hudson Yards, please visit www.hudsonyardsnewyork.com, or follow us on Twitter, Facebook and Pinterest. New renderings of the site and construction photos are also available.

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(sgp) NY

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