World Market Center(SM) Secures $225 Million In Permanent Financing

Furniture World News

Officials with World Market Center Las VegasSM (“WMC”), along with New York-based Ackman-Ziff Real Estate Group LLC, have announced that WMC has obtained $225 million in permanent financing from Bear Stearns Commercial Mortgage, to take out Phase One construction loan previously made by Hypo Real Estate, also in New York. This financing took place as the industry is preparing to participate in the much-anticipated Grand Opening of the project on July 25. WMC is slated to grow to be the largest trade campus for home and hospitality contract furnishings, and is being developed by World Market Center, LLC and The Related Companies, LP. “This loan is a continued sign of the strength of World Market Center and our successful leasing and construction activities,” said Marty Burger, President of Related Las Vegas and a partner of WMC. “Typically, permanent financing such as this does not take place until after the opening of the building. In the case of World Market Center, the financial community is highly confident of the success of the project and has accelerated the time table.” Jack Kashani and Shawn Samson, managing partners of WMC added, “We are on schedule to start the construction of Phase Two before the Grand Opening of the first building. This is great news for the hundreds of prospective tenants who are on our waiting list for space for future phases, and more than 40,000 expected domestic and international buyers attending our inaugural Las Vegas Market later this month.” “World Market Center has experienced an exceptionally strong and positive reception from the financial community,” said Alex Draganiuk, Director of The Ackman-Ziff Real Estate Group LLC, which specializes in debt, mezzanine and equity financing for commercial real estate. "As a result, we were able to secure favorable financing terms and repay the construction financing for Phase One well ahead of schedule. This will enable World Market Center’s management to move forward on an accelerated basis with construction of Phase Two.” Upon completion of Phases One and Two by early 2007, WMC will offer close to 3 million square feet of permanent showroom space, plus an additional 350,000 square feet of flexible space in large scale pavilions constructed on site. The long-term complete build-out of the project, which is projected for 2015, will offer more than 12 million square feet of customized permanent showrooms and flexible space. The project is located in downtown Las Vegas and has already given rise to a significant amount of activity toward the rebirth of downtown, where Las Vegas first got started. The partners in WMC include The Related Companies, LP, a fully integrated real estate company headquartered in New York. The Related Companies will oversee construction and financing requirements of all phases of WMC. Development of the WMC facility has positioned Las Vegas as the first large-scale international platform for the home furnishings and hospitality contract industries in the United States. The project received favorable reviews at the recent Heimtextil and Ambiente trade fairs at Messe Frankfurt in Germany, where the home and contract textile and decorative accessories segments demonstrated strong interest in doing business as part of the Las Vegas Market. For the first time in the U.S., Heimtextil and Ambiente will be participating in a show as part of Las Vegas Market in July. About World Market Center World Market Center is an integrated home and hospitality contract furnishings showroom and convention center complex being developed in Las Vegas. When fully built, the project will span 8 buildings connected by sky bridges. The 12 million square foot campus will showcase furniture, decorative accessories, lighting, area rugs, home textile and related segments, as well as a Design Center open year-round to the trade. Leasing applications are being taken now for Phases Two and Three. The first Market will be held in Las Vegas from July 25-29 2005, and at 2.5 million square feet of exhibition space, it will be the largest launch for any trade event or convention in U.S. history. For information, contact Babs Blair or Russell Blair at 888-416-8600 or visit www.LasVegasMarket.com.