Many popular skyscrapers in New York were built with the money of Kazakh politicians: what is known about them

What do two luxury new apartment buildings under construction on the Upper West Side and Midtown have in common? Connections with dubious Kazakh money and investors, explains New York Post.

As per site plan filed by Extell Development, towering 230 meters skyscraper at 50 W. 66th St. on the Upper West Side boasts 127 luxury apartments. Each $11 million five-bedroom apartment measures 361 square meters. m.

The building was designed by the futuristic Norwegian architecture firm Snøhetta. It has a swimming pool, squash courts and a stunning multi-level outdoor terrace garden.

In Diamond District, at 570 Fifth Avenue, Extell has also applied for building permits for a 335-meter ultra-tall building with 468 luxury apartments. The building will join the International Gem Tower and another planned 534-room hotel along West 48th Street.

This project is still at an early stage. However, construction of penthouses reminiscent of other super-tall Extell projects is expected. One57 - The penthouse in that building sold for over $100 million. As well as Central Park Tower, where the apartment is up for sale for $65 million.

On the subject: A rally was held at the Consulate General of Kazakhstan in New York: the diaspora supports the protests at home

Applaud them or hate them (as the NIMBY communities do), these buildings are an example of how dirty money from distant lands is changing New York's neighborhoods.

Both 50 W. 66th St. and 570 Fifth Avenue were funded by the mysterious private equity firm Meridian Capital.

Good investment by good businessmen

Meridian held a stake in 50 W. 66th St. etc. (Extell boss Gary Barnett has since bought the position). The company was founded in 2002 by former Minister of Oil and Gas of Kazakhstan Sauat Mynbayev, Kazakh billionaire Askar Alshinbayev and top managers of Kazkommertsbank, the largest private bank in Kazakhstan.

“They are just good businessmen who have made good investments. Why don't you like it?" - An anonymous source close to Extell answered the question with a question.

Based in Bermuda, Meridian is a Hong Kong-headquartered international investment firm with interests in everything from oil and mining to dairy farms, regional Russian airlines and luxury New York real estate, according to confidential documents leaked from a Bermuda law firm and released as part of the Paradise Papers.

Abuse of power and official position

Mynbaev used his "power, connections and position to help Meridian grow". This is stated in the report of the Organized Crime and Corruption Research Project. “[Kazkommertsbank] provided an easy loan that made Meridian an empire…the group used most of the bank’s deposits to fund one project after another.”
But that doesn't bother New York's top real estate developers.

“We have known [Meridian Capital] for 15 to 20 years,” said a person close to Extell (who agreed to speak on condition of anonymity). “They are just good businessmen who have made good investments. Why don't you like it?"

The source pointed to other Meridian deals. For example, the Russian dairy farm, which he sold to the French company Danone. As well as a shopping center in St. Petersburg, which he sold to Morgan Stanley for $1,1 billion.

“Meridian would not be able to make such deals if he was doing illegal business,” they said. “Real estate is one of the cleanest industries in the world. If you want to launder money, get diamonds or art objectsthat you can transport. You can't carry a building on your back."

Meridian did not respond to a request for comment.

Today, Kazakhstan is on fire due to anti-corruption protests that began last week over gas prices.

Some 2500 Russian troops mostly quelled the protests on behalf of President Kassym-Jomart Tokayev, with 12 detained.

They're buying up Manhattan

Kazakhstani kleptocrats, against whom the protests began, are not only mastering Manhattan, but also buying it up.

Bolat Nazarbayev, brother of Kazakhstan's first president, Nursultan Nazarbayev, bought an apartment on the 18th floor of the Plaza Hotel in 2008 for $20,1 million. According to property documents, after the divorce, Bolat sold it at a loss for $14 million in 2018.

Together with his former stepson Daniyar Nazarbayev, he spent over $7 million buying at least four properties on Cipriani Wall Street at 55 Wall St.

“During UN Week, they drove 29 SUVs with guns on their backs,” says broker Dolly Lenz, who was selling 55 on Wall Street at the time. She recalls the noisy celebrity parties in the building.

“I had never heard of Kazakhstan before and immediately thought then: who are these people?” added the broker.

When it comes to 50 W. 66th St. and 570 Fifth Ave., as with many towers built with shadow money, not only buyers but also developers are beginning to ask difficult questions, according to Jack Bloom, a former U.S. Senate State Attorney, a legendary expert in money laundering and evasion. taxes.

“Why does Kazakh money go to New York to build a beautiful tower for very wealthy buyers instead of investing it in Kazakhstan? he wonders. — Can Meridian Capital demonstrate the legitimacy of the source of funds? There's a good chance it won't."