JEMB Realty Participates in $1.5 Billion Debt and Equity Financing of Astoria Energy II LLC

JEMB Realty, a privately-held real estate and energy investment firm, has participated in the closing of a $1.5 billion debt and equity financing of Astoria Energy II LLC, a 550 MW natural-gas-fired power plant in Astoria, Queens, New York City. This is the second phase of the Astoria Energy facility, which is expected to be operational in 2011 and will double the size of the facility. The project has received a 20-year tolling agreement from the New York Power Authority (NYPA) to sell power beginning in 2011.

Key Takeaways:

• JEMB Realty participated in the $1.5 billion debt and equity financing of Astoria Energy II LLC, a 550 MW natural-gas-fired power plant in Astoria, Queens, New York City.
• The financing was oversubscribed, indicating a positive view of the project in the marketplace, with $1.1 billion of debt raised from thirteen domestic and international commercial bank lenders.
• Astoria Energy II will sell power beginning in 2011 to New York Power Authority (NYPA) under a 20-year tolling agreement signed in July 2008.
• The facility will be constructed by an affiliate of SNC-Lavalin Generation, one of the equity investors, with construction oversight provided by an affiliate of GDF Suez North America.
• An affiliate of Energy Investors Funds joined JEMB, SNC-Lavalin, and GDF Suez to complete the equity investor group.
• JEMB Realty has been involved in the project since the late stage development and initial financing of Astoria Energy's first phase in 2004.
• The Astoria Energy facility is expected to provide over 1,000 MW of clean power to New York City and its citizens.

Statistics:

• $1.5 billion: amount of debt and equity financing raised for Astoria Energy II LLC.
• 550 MW: capacity of the natural-gas-fired power plant in Astoria, Queens, New York City.
• 2011: expected operational date of the Astoria Energy II facility.
• 20 years: duration of the tolling agreement between Astoria Energy II and New York Power Authority (NYPA).
• 13: number of domestic and international commercial bank lenders that participated in the financing.
• 1.1 billion: amount of debt raised from the lenders.
• $8.2 million: square footage of commercial space owned and operated by JEMB Realty and its subsidiary, BUSAC Real Estate.

Sources:

• NEW YORK -- JEMB Realty, a privately-held real estate and energy investment firm, announced that a JEMB affiliate has participated in the closing last week of a $1.5 Billion debt and equity financing of Astoria Energy II LLC, which will construct, own and operate a new 550 MW natural-gas-fired power plant in Astoria, Queens in New York City.