China Center's 200,000 s/f lease biggest yet at Silverstein's 7WTC.

Beijing Vantone Real Estate Co., Ltd. Chairman Lun Feng and World Trade Center developer Larry A. Silverstein announced that a preliminary agreement has been reached to create the China Center--a business and cultural facility representing China's dynamic business community--within the nearly completed 7 World Trade Center in downtown Manhattan.

As part of a term sheet signed today, Beijing Vantone, one of China's largest private real estate developers, has agreed to the basic terms of a lease for at least 200,000 square feet of office space on the top five floors of 7 World Trade Center--the 48th through the 52nd floor--which would then serve as a hub for Chinese companies locating offices in New York and for international and U.S. firms interested in investing in China. The term sheet, while nonbinding, indicates that both parties have agreed in principle to the major parameters of the lease.

The innovative and pioneering concept of the China Center as an anchor of the new World Trade Center was conceived by Beijing Vantone, with support from the combined efforts of New York City and State government and the Partnership for New York City, a nonprofit coalition of the city's leading businesses.

"We are pleased to be building a bridge between the Chinese and U.S. business and cultural communities. There is no better place to enter a future together than from Lower Manhattan," said Chairman Feng. "The China Center will be both a business and cultural destination, providing a platform to nurture mutually beneficial dialogue."

Governor George Pataki, Empire State Development Corporation Chairman Charles Gargano, Deputy Mayor for Economic Development & Rebuilding Daniel L. Doctoroff, New York City Economic Development Corporation President Andrew M. Alper and leaders of the Partnership have all visited Beijing in a successful effort to foster stronger economic ties and demonstrate New York's commitment to establishing a Chinese business hub in Lower Manhattan.

Mayor Michael R. Bloomberg commented, "I want to thank Governor Pataki and Silverstein Properties for our strong partnership in restoring Lower Manhattan and rebuilding the World Trade Center site."

Added Mr. Silverstein, "Downtown is emerging as one of the world's most dynamic and diverse mixed use neighborhoods, and a Chinese business and cultural hub would help accelerate this exciting transformation. I thank the Governor, the Mayor and the Partnership for their determined efforts. I also want to acknowledge the special role played by Assembly Speaker Sheldon Silver who, in cooperation with the State and the City, has put in place a package of legislative programs that has made downtown an even more compelling location for first class tenants."

The New York City Investment Fund has committed up to $3 million in funding to support the China Center. Henry R. Kravis, founding chairman of the Fund, said "The China Center is a great example of what can be accomplished through public-private collaboration, both here at home and reaching across the world to the government and business leadership of China.

"Our Fund, which is dedicated to creating jobs and economic development in New York City, looks forward to helping Beijing Vantone create the Western hub of Chinese business as part of the rebuilding of Lower Manhattan."

Beijing Vantone is represented by Peter Riguardi, president of Jones Lang LaSalle's New York region, assisted by John Ryan and Paul Mas, both executive vice presidents with the firm's New York office.

Riguardi estimates that a lease will be complete within 60-120 days. He suggested that the deal could spur others in the building, an effect that Silverstein was no doubt seeking to encourage sooner rather than later by announcing the completed term sheet well before an actual lease will be signed.

"I think that [the deal] was important because of the cache attached to it, it does shows that this building is viable and the location is viable and I think that its uses will present great amenities for other tenants who go to the World Trade Center," Riguardi said.

Xue Ya and Andrew Swain are Vantone's representatives in New York leading the project development of the China Center.

Josef Mittleman, Chief Operating Officer for Silverstein Properties and Cathy Giliberti of Silverstein Properties are overseeing the negotiation for the ownership. The agency leasing team from CB Richard Ellis for 7 WTC is led by Mary Ann Tighe, CEO of the firm's New York Tri-State Region, Stephen B. Siegel, chairman, global brokerage, and Simon Wasserberger, first vice president.