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

The company is the third known bidder attempting to wrangle the asset from Sahara Group

TRD New York /
Jul.July 01, 2018 01:00 PM

United Capital Real Estate’s Attilio F. Petrocelli, Sahara Group’s Subrata Roy and the Plaza Hotel in Manhattan

A third bidder for the landmark Plaza Hotel has emerged through a lawsuit filed last week in Manhattan court.

United Capital Real Estate sued majority owner Subrata Roy’s Sahara Group claiming it asked the company to go into contract to buy the hotel while quietly seeking a separate deal, Bloomberg reported. United wants $1 billion in damages. In addition to the contract for the Plaza, the proposed deal with United also included Sahara’s 85 precent stake in the Dream Hotel, according to the complaint, with both contracts being signed by Roy in February.

The claimed incident would have been going on while two other groups competed to pry the building away from Roy. Two investors, Shahal Khan and Kamran Hakim, offered $600 million, but the current minority owners, Ashkenazy Acquisition Corporation and Kingdom Holding, had the right to match that number and did. Ashkenazy and Kingdom have not closed, however, and in May the pair sued Sahara over requested deposits.

The Real Deal reported that Sahara granted Ashkenazy and Kingdom an extension to close. Kahn and Hakim, meanwhile, have been trying to get Sahara to let them close the deal instead. [Bloomberg] —Will Parker

Related Articles

Softbank CEO Masayoshi Son (Credit: Getty Images)

SoftBank’s $3B payout to WeWork’s investors is delayed

John Legere (Credit: Getty Images)

WeWork reportedly in talks to hire T-Mobile exec as CEO

(Credit: iStock)

Small Talk: Every community meeting. About every development project. Ever.

An example of roll-off waste management (Credit: YouTube, iStock)

A win for big building owners in trash-collection fight

Duke Long and Poshtel International CEO Morten Lund

“I can talk about erections all day”: NAR tech consultant’s bizarre fireside chat

Council member Vanessa Gibson (Credit: New York City Council)

Commercial landlords face new fines as City Council passes anti-harassment bill

From left: Pavel Fuks, Michael Cohen, Felix Sater, and Donald Trump (Credit: Getty Images and Wikipedia)

As House begins impeachment inquiry, here’s what we know about Trump’s Ukraine-real estate ties

Rodrigo Niño (Credit: Prodigy Network and iStock)

Embattled Prodigy Network CEO Rodrigo Niño to step down