Toll Brothers, Inc., the nation’s leading builder of luxury homes
(NYSE:TOL) (tollbrothers.com), and Gemdale Properties and
Investments (“GPI”, 535.HK), an affiliate of Gemdale Corporation
(600383.SH), one of China’s largest and leading real estate
developers, announced today their formation of a joint venture to
co-develop a luxury condominium project at 121 East 22nd Street in
Manhattan. The project consists of a two-tower, 133-unit luxury
condominium building, designed by the Office for Metropolitan
Architecture (OMA), which was founded by Pritzker Prize-winning
architect Rem Koolhaas. Designed by principal Sho Shigematsu, the
residential tower marks the firm’s first building in
Manhattan, as well as Sho’s decade-long tenure directing OMA
New York.
The project is located in Manhattan’s exclusive
Gramercy Park neighborhood on a site spanning East 22nd Street to
East 23rd Street with corner frontage on Lexington Avenue at 23rd
Street. The building will have two connected towers with a single
residential entrance on East 22nd Street. The site lies one block
north of the prestigious Gramercy Park, placing the project in the
heart of the neighborhood which is home to a wealth of history,
art, and exceptional dining. Tree-lined streets offer area
residents a distinctive setting in close proximity to Midtown
Manhattan, one of the most highly concentrated Class A business
centers in the world, and within blocks of Silicon Alley, a tech
hub benefiting from one of the most significant flows of venture
capital in the United States. The site is also a short stroll to
both Madison Square Park and Union Square Park.
The Toll Brothers-Gemdale joint venture has
secured a $237 million construction loan from a syndicate of five
banks including Bank of New York Mellon as Administrative Agent and
Joint Lead Arranger, Capital One as Joint Lead Arranger, China
Merchants Bank New York, MUFG Union Bank, N.A., and CIT Bank. The
debt and equity were arranged by Toll Brothers’ in-house Finance
Department.
Douglas C. Yearley, chief executive officer of
Toll Brothers, stated: “We are very pleased to team with Gemdale to
develop this spectacular luxury condominium project. 121 East 22nd
Street is another in a long line of dramatic, residential projects
built by Toll Brothers City Living in the New York City market. Its
exceptional location within the Gramercy Park neighborhood makes
this one of the most appealing buildings in which to live in all of
New York City.”
Jason Zhu, Chairman of Gemdale USA, stated:
“This distinctive 121 East 22nd Street project benefits from a
world-class Pritzker Prize-winning architectural firm which has
designed some of the leading buildings in the world.”
Michael Krupa, President of Gemdale USA, stated:
“We are delighted to work with Toll Brothers, a Fortune 600
Company, and the leading builder of luxury homes in the U.S., with
a nearly 50-year history of developing exceptional projects across
the country. Moreover, we are delighted and honored to be part of
such an iconic project in Manhattan’s distinctive Gramercy Park
neighborhood.”
Frederick N. Cooper, Toll Brothers’ Senior Vice
President of Finance, International Development and Investor
Relations, stated: “We are excited to be partnering with Gemdale to
develop this unique project. This, our first joint venture with
Gemdale, is the culmination of a relationship spanning ten years
and multiple interactions both in the U.S. and China. We also
are very pleased that our solid banking relationships have resulted
in a strong lending group to finance this landmark project.”
About Toll Brothers
Toll Brothers, Inc., A FORTUNE 600 Company, is
the nation's leading builder of luxury homes. The Company began
business in 1967 and became a public company in 1986. Its common
stock is listed on the New York Stock Exchange under the symbol
“TOL.” The Company serves move-up, empty-nester, active-adult, and
second-home buyers and operates in 20 states: Arizona, California,
Colorado, Connecticut, Delaware, Florida, Idaho, Illinois,
Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey,
New York, North Carolina, Pennsylvania, Texas, Virginia, and
Washington, as well as in the District of Columbia.
Toll Brothers builds an array of luxury
residential single-family detached, attached home, master planned
resort-style golf, and urban low-, mid-, and high-rise communities,
principally on land it develops and improves. The Company operates
its own architectural, engineering, mortgage, title, land
development and land sale, golf course development and management,
home security, and landscape subsidiaries. The Company also
operates its own lumber distribution, house component assembly, and
manufacturing operations. Through its Gibraltar Capital and Asset
Management joint venture, the Company provides builders and
developers with land banking and joint venture capital. The Company
acquires and develops commercial and apartment properties through
Toll Brothers Apartment Living, Toll Brothers Campus Living, and
the affiliated Toll Brothers Realty Trust, and develops urban
low-, mid-, and high-rise for-sale condominiums through Toll
Brothers City Living.
In 2016, Toll Brothers ranked #6 among all 1,500
companies in Fortune magazine’s survey of the World’s Most Admired
Companies in the Quality of Products/Services Offered category
behind only Apple, Walt Disney, Amazon, Alphabet, and Nordstrom.
The firm was also named as the Most Admired Home Building Company
for 2016, the second year in a row it has been so honored. Toll
Brothers was named 2014 Builder of the Year by Builder magazine,
and is honored to have been awarded Builder of the Year in 2012 by
Professional Builder magazine, making it the first two-time
recipient. Toll Brothers proudly supports the communities in which
it builds; among other philanthropic pursuits, the Company sponsors
the Toll Brothers Metropolitan Opera International Radio Network,
bringing opera to neighborhoods throughout the world. For more
information, visit www.tollbrothers.com.
Toll Brothers discloses information about its
business and financial performance and other matters, and provides
links to its securities filings, notices of investor events, and
earnings and other news releases, on the Investor Relations section
of its website (tollbrothers.com/investor-relations).
About Toll Brothers City Living
Toll Brothers City Living® is the urban
development division of Toll Brothers, Inc., the nation’s leading
builder of luxury homes. Toll Brothers City Living® is bringing the
same quality, value, and service familiar to our luxury home buyers
throughout the country to some of the most dynamic urban markets
including New York City; Hoboken and Jersey City, New Jersey;
Philadelphia, Pennsylvania; and the Greater Washington, D.C., metro
area. Toll Brothers City Living communities combine the energy of
an urban lifestyle with unparalleled amenities, spectacular
architecture, and energy-efficient home design. For more
information, visit www.tollbrotherscityliving.com.
About Gemdale Properties and Investment
Gemdale Properties and Investment, a subsidiary
of Gemdale Corporation, is a leading real estate developer and
operator in the Greater China region. Gemdale PI is listed on the
Hong Kong Stock Exchange (535.HK) and is principally engaged in
residential, commercial, and business park property investment,
development and management. Gemdale PI currently operates 43
projects covering 15 major cities in China. Since its first
investment in the U.S., in Los Angeles in 2015, Gemdale PI has
expanded rapidly in the international property market and intends
to expand its presence in other carefully selected major
metropolitan cities around the world.
Gemdale Corporation (600383.SH) was founded in
1988 and listed on the Shanghai Stock Exchange in 2001. Gemdale
Corporation is renowned for being a large-scale national property
developer in China with highly regarded projects throughout the
country. While Gemdale’s roots are in the residential condominium
sector, with over 45,000 residential condominium units built and
sold in 29 major cities in China in 2015 alone, Gemdale has also
embarked in recent years on commercial/mixed-use developments as
well as real estate private equity funds management. Gemdale has
received numerous real estate industry awards over the years,
including “Top 10 China Listed Real Estate Companies in terms of
Comprehensive Strength,” “Blue Chip Property Developers in China,”
and the “Most Valuable Listed Real Estate Enterprise in China,”
amongst other honors.
Forward Looking Statement
Certain information included in this release is
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995, including, but not limited to,
information related to: anticipated operating results; anticipated
financial performance, resources and condition; selling
communities; home deliveries; average home prices; consumer demand
and confidence; contract pricing; business and investment
opportunities; market and industry trends; and the anticipated
benefits to be realized from the acquisition of Coleman Homes.
Such forward-looking information involves
important risks and uncertainties that could significantly affect
actual results and cause them to differ materially from
expectations expressed herein and in other Company reports, SEC
filings, statements and presentations. These risks and
uncertainties include, among others: local, regional, national and
international economic conditions; fluctuating consumer demand and
confidence; interest and unemployment rates; changes in sales
conditions, including home prices, in the markets where we build
homes; conditions in our newly entered markets and newly acquired
operations; the competitive environment in which we operate; the
availability and cost of land for future growth; conditions that
could result in inventory write-downs or write-downs associated
with investments in unconsolidated entities; the ability to recover
our deferred tax assets; the availability of capital; uncertainties
in the capital and securities markets; liquidity in the credit
markets; changes in tax laws and their interpretation; effects of
governmental legislation and regulation; the outcome of various
legal proceedings; the availability of adequate insurance at
reasonable cost; the impact of construction defect, product
liability and home warranty claims, including the adequacy of
self-insurance accruals, and the applicability and sufficiency of
our insurance coverage; the ability of customers to obtain
financing for the purchase of homes; the ability of home buyers to
sell their existing homes; the ability of the participants in
various joint ventures to honor their commitments; the availability
and cost of labor and building and construction materials; the cost
of raw materials; construction delays; domestic and international
political events; weather conditions; and the anticipated benefits
to be realized from the acquisition of Coleman Homes. For a more
detailed discussion of these factors, see the information under the
captions "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" in our most
recent annual report on Form 10-K and our subsequent quarterly
reports on Form 10-Q filed with the Securities and Exchange
Commission.
Any or all of the forward-looking statements
included in this release are not guarantees of future performance
and may turn out to be inaccurate. Forward-looking statements speak
only as of the date they are made. The Company undertakes no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contact
For Toll Brothers
Frederick N. Cooper, Senior Vice President
fcooper@tollbrothersinc.com (215) 938-8312
For Gemdale
Michael H. Krupa, President
michael.krupa@gemdaleusa.com (212) 266-0184
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