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Fate of New York’s Plaza takes another twist

Sheikh Hamad bin Jassim bin Jaber Al Thani, one of the most influential figures in Qatar, has acquired the mortgage on New York’s famed Plaza hotel, which Bloomberg reported Tuesday could give him the inside track on the potential sale of the property with some beleaguered owners – namely embattled Sahara India Pariwar’s Subrata Roy, who in 2014 was arrested for alleged unauthorized bond sales, and Saudi Prince Alwaleed bin Talal, who reportedly is under house arrest as part of a corruption sweep in Saudi Arabia.

Roy was was jailed for two years and ordered to return almost US$4 billion. Since then, he has put three of his hotels up for sale to raise cash, including the Plaza.

Alwaleed reportedly recently sold half of his 25% in the Plaza to real estate developer Ben Ashkenazy. Al Thani happens to be a silent lender to Ashkenazy, who has been eyeing an even bigger stake as Roy puts his interest on the market.

Bloomberg reported that working through a Luxembourg company, Al Thani made a set of deals that paved the way for Ashkenazy to scoop up London’s Grosvenor House hotel, also owned by Roy, for roughly US$750 million in July, regulatory filings show. As part of the transaction, Al Thani became the senior lender to the Plaza. That means he can apply the mortgage amount to a potential bid, and lower his upfront cost, if he teams up with Ashkenazy or decides to make an offer on his own.

When reached by phone by Bloomberg, Sandeep Wadhwa, head of corporate finance for Roy’s Sahara India Pariwar and president of its U.S. operations, said it had received less than 10 offers for its 75% stake in the Plaza and expects several more. He said neither Al Thani, Ashkenazy nor Alwaleed have submitted bids yet and didn’t foresee Alwaleed’s arrest affecting the sale.

Ashkenazy, who bought half of Alwaleed’s 25% stake in May, gained the right of first refusal to buy the building, two people familiar with the matter told Bloomberg. Once the bidding closes, Ashkenazy can match any offer within 30 days.

Al Thani could use the mortgage to his advantage. GHH, the Luxembourg entity that holds the loan, said in an October regulatory filing that it began to “pursue” a real estate investment in the U.S. in June and July.

Wadhwa says that Roy would be more than happy to sell the Plaza to Al Thani – as long as the price is right.

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