Malaysia’s Maybank sued for ‘thwarting’ luxury flat block in New York

Developer Sharif el-Gamal said in a notice and summons filed in New York state court that Malayan Bank Berhard ‘ignored and breached their obligations’

He is seeking an award of more than US$245 million, which he says is the projected net sell-out value of the property located at 43-47 Park Place

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Maybank customers queue for an ATM machine in Kuala Lumpur. Photo: Reuters

Published: 10:37am, 11 Jun 2020Updated: 10:37am, 11 Jun 2020

The developer of a 43-story luxury apartment building in Manhattan’s Tribeca neighbourhood has sued Malaysia’s biggest bank for reneging on agreements to provide more than US$162 million in syndicated construction loans and “effectively thwarting” the project.

Sharif el-Gamal said in a notice and summons filed in New York state court on Tuesday that Malayan Bank Berhard, also known as Maybank, and other syndicate members “ignored and breached their obligations under the building facility and related loan documents.” Their actions have caused “irreparable damage to the plaintiff’s relationship with its contractor, leading to a cessation of all work,” he said.

Gamal is seeking an award of more than US$245 million, which he says is the projected net sell-out value of the property located at 43-47 Park Place, two blocks north of the former World Trade Centre site. The residential units at the building have been priced at an average of more than US$3,000 per square foot.

The syndicate filed a foreclosure action on the property in March. Maybank declined to comment. A lawyer representing Gamal’s Park Place Development Primary didn’t return an email seeking comment about the summons.

A view of the Manhattan skyline from New York's LaGuardia Airport. Photo: Reuters

Over a decade ago, Gamal drew controversy with a proposal to build an Islamic cultural centre and mosque on the site. In 2011 he shelved that plan, which detractors had labelled the “Ground Zero mosque.”