New partner joins World Trade Center.

New partner joins World Trade Center

IDM Corp. and Kajima International Inc., co-developers of the $200 million first phase of the Los Angeles World Trade Center in Long Beach, last week announced the addition of a third partner to develop the project's second phase, an $80 million hotel.

Joining IDM and Kajima in the hotel project is Matsushita Real Estate, a California corporation recently formed by the principal owners of Japan-based Matsushita Fudosan Ltd.

It will be the first U.S. venture for Matsushita, which was brought on board by IDM and Kajima to provide long-term financing for the project. The specific dollar amount to be invested by Matsushita and the equity stake it will get in return for that investment were not disclosed.

"We financed the first phase office tower with loans from a consortium of about 21 separate financial institutions," explained Jim McMillan, a vice president at IDM. "But the pay-back period is much longer and more spread out for hotels than for office projects. So we decided to bring in a long-term limited partner."

Providing additional financing for the project is The Sumitomo Trust & Banking Company Ltd.

Sumitomo, however, is acting as a traditional lender and will not be made an equity partner, McMillan said.

Ground is scheduled to be broken next month for the 393-room hotel, which is due to be completed by fall 1991. It will be operated by Hilton Hotels Corp.

The World Trade Center's first phase, a 558,000-square-foot office building, was completed by IDM and Kajima in Jan. 1989. The 27-story tower is now 75 percent leased, the co-developers reported.

The World Trade Center's third and final phase, a $225 million office tower, is slated to break ground in the first quarter of 1991. It will consist of 600,000 square feet of space in 34 stories and is tentatively scheduled for completion in early 1993.