The Real Deal New York

Madison Capital bids $800M for Subrata Roy’s stakes in hotels

Proceeds from sale of Plaza, Dream Downtown hotels to help bail Sahara Group CEO out of jail

July 29, 2014 10:00AM

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From left: The Plaza, Dream Downtown and Subrata Roy

From left: The Plaza, Dream Downtown and Subrata Roy

One of New York City’s largest investors in luxury properties is looking to buy stakes in the Plaza and Dream Downtown hotels from an embattled Indian conglomerate.

Madison Capital Holdings has submitted a bid for $800 million to buy the Sahara Group’s stake in the properties, the Economic Times of India reported.

CBRE and JLL valued the pair of properties at $844 million in a report cited by the newspaper. The real estate consultants put the value of the Plaza at $592 million and pegged the Dream Downtown at $252 million. Madison’s offer represents a 21 percent premium to Sahara’s $628 million stake by that valuation’s measure. Sahara Group has a 70-percent interest in the Plaza and an 85-percent stake in the Dream Downtown.

Sahara Group is seeking to raise $1.7 billion to get its chief executive, Subrata Roy, out of prison, the International Business Times reported. He is being held for failing to comply with a  Supreme Court order to refund $3.9 billion to 30 million investors, according to the news site. [Economic Times] and [IBTimes]Tom DiChristopher

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