Bizarre case of deed fraud complicated Anbang’s $5.8B hotel portfolio deal

The buyer of the assets is Mirae Asset Global Investments, an arm of a South Korean financial services firm

TRD NATIONAL /
Sep.September 10, 2019 06:21 PM
Anbang’s Andrew Miller with Fairmont Chicago and JW Marriott Essex House on Central Park South (Credit: Wikipedia)

Anbang’s Andrew Miller with Fairmont Chicago and JW Marriott Essex House on Central Park South (Credit: Wikipedia)

It might have been one of the biggest heists of all time.

Anbang has sold its U.S. hotel portfolio to the highest bidder at a price north of $5.8 billion, but a last-minute wrench was thrown into the deal when the Chinese insurance conglomerate discovered six of the properties’ deeds were fraudulently transferred to limited liability companies, the Wall Street Journal reported.

The deal with the buyer, South Korea’s Mirae Asset Global Investments, was due to close last month but was delayed due to fake deeds that transferred the ownership of six of the properties to unidentified limited liability companies. (One was reportedly called Andy Bang LLC.)

The fraudulent transfers were discovered as part of a routine search and sources told the Journal that Anbang had no knowledge of the transactions. The six properties found with fake deeds were all located in California.

Anbang, which has been selling off its holdings in the U.S. since its former chairman was sent to prison last year, began accepting bids for its hotel portfolio earlier this spring. Other bidders included Brookfield Asset Management, Fortress Investment Group and Blackstone Group. The Waldorf Astoria in New York, which is also owned by the insurer and is partly being converted into condos, was not included in the sale. [WSJ] — Erin Hudson


Related Article

arrow_forward_ios

The trade war keeps escalating. Here’s how it’ll impact real estate

The trade war has created an uncertain environment for construction. (Credit: iStock and Getty Images)

General contractors are suffering under Trump’s new tariffs on Chinese goods

Anbang former Chairman, Wu Xiaohui and some of the properties

Anbang’s multibillion-dollar US luxury hotel portfolio may have buyer: report

From left: London, Shanghai and Paris

In London, WeWork already reaping rewards of planned Brexit: Global property

(Credit: iStock)

What China’s warning to students studying in the US means for real estate

An aerial view of Hong Kong Downtown (Credit: iStock)

How long can Hong Kong’s family real estate dynasties last?

WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

Adam Neumann is facing a coup. Can We work without him?

Federal Reserve Chairman Jerome Powell (Credit: Getty Images)

Real estate stocks dip slightly amid Fed Rate cut, housing starts data

Alex Rodriguez, slugger-turned-investor, nears multifamily fundraise goal

WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

Small Talk: Trying to make sense of the WeWorld

RXR Realty’s Scott Rechler and Kitchen United CEO Jim Collins

RXR Realty gets in on shared kitchen space startup’s national expansion

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

WeWork CEO Adam Neumann (Credit: Getty Images and iStock)

WeWork’s side businesses are fizzling

WeWork CEO Adam Neumann (Credit: Getty Images)

Adam Neumann wants to live forever – that and more zany news about WeWork’s CEO

arrow_forward_ios