Plaza to sell for $600M to Indian company?

TRD New York /
Apr.April 08, 2012 01:04 PM

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]


Related Articles

arrow_forward_ios
The Plaza’s many lives: How moguls, labor fights and a changing city shaped an icon

The Plaza’s many lives: How moguls, labor fights and a changing city shaped an icon

Plaza PH buyer spends $29M to expand aerie

Plaza PH buyer spends $29M to expand aerie

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

How the Plaza was won: A look at Subrata Roy’s path to selling the landmark hotel

Qatari group closes on $600M purchase of Plaza Hotel

Qatari group closes on $600M purchase of Plaza Hotel

United Capital Real Estate claims fraud in its own bid to buy the Plaza Hotel

United Capital Real Estate claims fraud in its own bid to buy the Plaza Hotel

Ashkenazy, Kingdom get extension to close on Plaza deal: sources

Ashkenazy, Kingdom get extension to close on Plaza deal: sources

National Cheat Sheet: Warren Buffett’s Berkshire Hathaway pays $130M for Brookfield stake … & more

National Cheat Sheet: Warren Buffett’s Berkshire Hathaway pays $130M for Brookfield stake … & more

arrow_forward_ios