The Real Deal New York

Plaza to sell for $600M to Indian company?

April 08, 2012 01:04PM

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]