Malayan Bank Berhad – better known as Maybank – is reportedly being sued for «effectively thwarting» a Manhattan-based proper project after allegedly reneging on a loan agreement.
American real estate developer Sharif El-Gamal said that the Malaysian lender and other syndicate members «ignored and breached their obligations under the building facility and related loan documents» which caused «irreparable damage to the plaintiff's relationship with its contractor, leading to a cessation of all work», according to a «Bloomberg» report citing a notice last week.
El-Gamal, also chairman and chief executive of Soho Properties, is seeking an award of more than $245 million which he claims is the net sell-out value of the property which has been filed for disclosure by the loan syndicate.
Reneged Obligations
According to El-Gamal, Maybank reneged on agreements to provide more than $162 million in syndicated construction loans to fund the project in New York.
At the time of the project’s announcement, El-Gamal reportedly also said in a statement a senior construction loan totaling US$174 million was received from a syndicate that also included Warba Bank of Kuwait and Intesa Sanpaolo alongside US$45 million in mezzanine financing from MASIC, a Saudi investment firm.
The case with the New York State Supreme Court is titled Park Place Development Primary LLC v Malayan Bank Berhard.
