An Indian company which runs a hotel in Mumbai, the Sahara Group, is working on a deal to acquire the landmarked Plaza for around $600 million, according to the Economic Times. The company “is carrying out a due diligence of the asset and has paid an advance to the property’s owners,” a source close to the deal told ET.
The hotel, at the corner of 59th Street and Fifth Avenue, is being valued at around $400 million while the Shops at the Plaza, which has struggled due to low foot traffic, is being valued at around $200 million, ET said. Included in the deal is a stipulation that Canada’s Fairmont Hotels & Resorts will no longer manage the property. Sahara and the Plaza’s owner, the Elad Group, declined to comment to ET.
The Plaza was acquired by Yitzhak Tshuva’s Elad in 2004 for $675 million, which spent $400 million on renovations including turning part of the hotel into condominium units, and reopened in 2008. [Economic Times]