Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
Powered by cricketnext logo
News18 » Business
2-min read

Two Investors Reach Deal to Buy Sahara’s Historic Plaza Hotel in New York: Report

The report identified the buyers as Shahal Khan, founder of the Dubai-based White City Ventures, and Kamran Hakim of the Hakim Organisation, a New York City real estate company.

IANS

Updated:May 4, 2018, 10:07 PM IST
facebookTwitter Pocket whatsapp
Two Investors Reach Deal to Buy Sahara’s Historic Plaza Hotel in New York: Report
(Image: Reuters)

New York: A Dubai investment group and a New York real estate company have reached a deal to buy the majority stake owned by Subrata Roy's Sahara Group in the New York Plaza Hotel for $600 million, according to media reports.

The prospective buyers have seven weeks to close the deal, real estate newspaper Real Deal reported quoting sources close to the buyers.

Roy's Sahara Group has been under orders from the Supreme Court to make refunds of thousands of crore rupees to investors.

The New York Times identified the buyers as Shahal Khan, founder of the Dubai-based White City Ventures, and Kamran Hakim of the Hakim Organisation, a New York City real estate company.

The newspaper said the deal was confirmed by Sandeep Wadhwa, head of corporate finance at the Sahara Group, which owns a 70 per cent stake in the hotel, and Sant Singh Chatwal, a hotelier who owns 5 per cent being sold.

One of the sources for funding the acquisition by Khan and Hakim is a loan from David and Simon Reuben, whom the Real Deal described as "Mumbai-born British billionaires" who "bought the note on the Plaza from Sahara in 2015".

A partnership of the real estate firm Ashkenazy Acquisition Corp and Saudi Prince Al-waleed bin Talel-controlled Kingdom Holdings owns the remaining 25 per cent of the Plaza, the Times said.

The Plaza Hotel founded in 1907 is one of the city's landmarks.

The Sahara Group is under court orders in India to pay off debts amounting to several thousands of crores of rupees.

The Securities and Exchange Board of India (SEBI) had asked the court in 2014 to order the recovery of Rs 36,000 crore from Sahara to pay investors who had bought securities from two companies belonging to the group.

Roy is now out on parole after spending time in Delhi's Tihar Jail for failing to comply with court orders.

Last year, a New York company, MG Capital Holdings, backed out of an offer to buy the hotel for $550 million and failed to pay the required deposit of Rs 750 crore in the SEBI account for Sahara refunds to investors.

The Supreme Court, which had ordered the repayment of Sahara debts, jailed Prakash Muthuswamy, who held the power of attorney for the prospective buyer, for one month.

Unlike previous deals, the offer by Khan and Hakim is expected to go through because they made an irrevocable $30-million deposit, the Times said.

However, the Times said that the minority shareholder, the Ashkenazy and Kingdom partnership, have the right of first refusal to buy the hotel at the same price.

The Real Deal said that Sahara may consider a lower bid from Ashkenazy Acquisition Corp.

Meanwhile, The Wall Street Journal reported that employees at the hotel were on strike and that guests who had booked rooms costing as much as $1,000 a night were being turned away.

Real Deal described Khan as the founder of Chimera Group and the Dubai-based investment company, White City Ventures.

According to the newspaper, Hakim is an immigrant from Iran and a company controlled by him owns more than 100 properties in New York.

CNBC, the business TV channel, reported that Chimera had considered a proposal to raise money for buying the Plaza Hotel through a cryptocurrency offering valued at $375 million.

But Real Deal said that cryptocurrency was not being used.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

| Edited by: Sanchari Chatterjee
Read full article
Next Story
Next Story

facebookTwitter Pocket whatsapp
Most Active
Company Price Change %Gain
Reliance 1,485.50 -1.24
IRCTC 1,927.75 5.30
Indiabulls Hsg 338.30 10.81
Tata Chemicals 764.50 -0.08
HDFC Life 573.75 -0.93
Top Gainers
Company Price Change %Gain
IndusInd Bank 1,181.75 3.57
Tata Steel 443.70 2.48
SBI 327.65 2.31
ONGC 102.85 1.13
Power Grid Corp 189.35 1.01
Top Losers
Company Price Change %Gain
Asian Paints 1,842.85 -2.30
HUL 2,247.85 -1.99
TCS 2,156.30 -1.75
Nestle 16,544.10 -1.38
Tech Mahindra 829.55 -1.36

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results