India's Sahara Group has agreed to buy a controlling stake in New York's landmark Plaza Hotel for US$570m, Elad Properties, an Israeli-owned real estate company, said on Monday.
The 105-year old luxury hotel overlooking New York's Central Park, is jointly owned by Elad Properties, an Israeli-owned real estate company, and Saudi-based Kingdom Holding, the investment vehicle controlled by HRH Prince Alwaleed bin Talal.
Elad, controlled by Israeli businessman Yitzhak Tshuva, said it would receive ILS1.6bn (US$400m) for its 60 percent stake, while Kingdom will receive the rest.
Kingdom, the investment vehicle of Saudi billionaire Prince Alwaleed bin Talal, will hold a 25 percent stake once the deal is completed, Elad said in a statement.
Elad said Fairmont Hotels & Resorts Inc, which has managed the hotel since 1999 and which is owned by the Saudi prince, will continue to operate the property.
Tshuva bought the hotel eight years ago for US$675m.
According to media reports, Elad had sold luxury apartments in the renovated hotel for US$1.5bn. The sale of the apartments alone netted Elad Group US$500m in profit.
adapted from arabianbusiness.com