Elad Properties announced the details of its sale of a 60 percent stake in the Plaza hotel, Reuters reporterd. India-based Sahara Group will pay Elad $400 million for its share of the property and fork over an additional $170 million for another 15 percent of the property currently owned by Kingdom Holdings, an investment group run by Prince Alwaleed bin Talal of Saudi Arabia. Kingdom will retain a 25 percent stake, according to Elad.
The announcement provides a clearer picture of the deal than previously published reports. In April, rumors of a $600 million sale first emerged, and then it became unclear how big Kingdom Holdings’ stake in the property was and whether they intended on unloading that stake.
Elad, run by Yitzhak Tshuva, paid $675 million to Kingdom Holdings for the hotel in 2004, but sold back some shares to Kingdom Holdings amid a $400 million renovation. [Reuters]