Sahara India Pariwar has opened talks to buy the hotel at a value of $575-600 million from Yitzhak Tshuva's Elad, reports "India Today."
"India Today" reports that the Sahara India Pariwar Ltd., owned by chairman Subrata Roy, is interested in acquiring the New York Plaza Hotel from Yitzhak Tshuva. Sahara Group subsidiary Aamby Valley (Mauritius) Ltd. has sent a head of terms letter to Elad Properties, citing a value of $575-600 million for the hotel. The cash offer is for the hotel "as is" and debt free. Fairmont Hotels & Resorts Inc. manages the west side hotel, which overlooks Central Park, for Elad. The paper adds that Sahara Group would terminate the contract with Fairmont Hotels.
India's "Economic Times" says that Sahara Group has already made a down payment for the Plaza Hotel, and is conducting due diligence. It says that the hotel part of the property, which has 100 condominiums and 130 large condominium rooms, is being valued at $400 million, and its premium retail space is being valued at around $200 million. It also says that a condition of a deal is for Elad to first terminate the management agreement with Canada's Fairmont Hotels with immediate effect.
Published by Globes [online], Israel business news - www.globes-online.com - on April 8, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012