Date: April 24, 2020
By: Tobias Hoonhout
President Donald Trump and China’s President Xi Jinping at the G20 leaders summit in Osaka, Japan, June 29, 2019 (Kevin Lamarque/Reuters)
Financial records show that President Trump still owes the state-owned Bank of China millions from a $211 million loan that he used to refinance his 30-percent stake in a New York City skyscraper.
Politico reported Friday that Trump’s investment in 1290 Avenue of the Americas, a 43-story building adjacent to the Trump Tower in Manhattan, is a passive one, with Vornado Realty Trust holding the majority stake — 70 percent — in the skyscraper, which has a market value of over $1 billion.
In a 2012 refinancing of the building, the Bank of China became the first Chinese lender to join the U.S. commercial-mortgage-backed securities market by providing a $211 million loan. Vornado and Trump are due to pay back the loan by November 2022, with Chinese experts warning that Beijing could have compromising financial information on the president.
Trump has mentioned the investment in the past, saying when he announced his candidacy in 2015 that he owns “a big chunk” of the building “that I got from China in a war.” The New York Times reported in 2016 that Trump received his 30 percent share in the building in a court order, after suing former Hong Kong business partners for cash, who he argued had committed a “staggering breach” of fiduciary duty for not consulting him on a real-estate development sale.
“Through more luck than talent, I ended up much better because the buildings have increased in value,” Trump said at the time. “In the end, it was fine.”