BANKS are not only circling the city, they’re more aggressively starting to wave their foreclosure wands.
One developer and manager of residential projects in many boroughs – including some high-profile projects – told me he’s cutting a deal with his foreign bankers.
“They want a payout,” the developer shrugged.
The bank already postponed a sale of his stakes in various one-entity companies from last week until tomorrow.
As a result of the pressure from banks, the latest buzzword to arrive is “rescue equity.” It will soon be brought into underwater deals by White Knights who will allow current operators to stay – rather than kick them out as so-called vulture investors do.
In one closely-watched bank stand-off, Donald Trump just got a worried Deutsche Bank to blink – and fork over $13.2 million in construction funds towards his soon to be completed spectacular Chicago hotel and condo tower.
The lender filed a $40 million suit against him after he slapped them with his own $3 billion lawsuit. Trump claims they damaged his brand by ceasing funding after he invoked his specially worded “force-majeure” clause due to events and circumstances that “are not reasonably” within his control.
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Unfortunately, like its Las Vegas model, Dubai is now showing it’s not immune from the worldwide economic tsunami.
The royal fami ly’s Nakheel de velopment arm just laid off 500 people and stopped work on most of its projects, in cluding the Trump Dubai on the Palm Jumeriah.
Competing Emirate-based developers are also laying off hundreds of people. The 24-hour dance of the tower cranes is now stopping. We ain’t seen nothing yet. [email protected]
