Just when you thought there was closure on the sale of New York’s Plaza hotel, news broke late last week that suitors Ashkenazy Acquisition Corp. and Saudi Prince Alwaleed Kingdom Holding Co. are suing majority owner Sahara US Corp. for allegedly reneging on an agreement that gives the minority investor duo the right to match another offer.
Ashkenazy and Kingdom earlier this month exercised their right of first refusal on a US$600 million bid for the property and said they have big plans to refurbish the landmark property.
Bloomberg reported on Saturday that a complaint filed in New York state court Friday said Sahara, which owns 70% of the Plaza, was demanding a second deposit for Ashkenazy and Kingdom, and has been negotiating with other parties.
Sandeep Wadhwa, president of Sahara US, told Bloomberg the company disagrees with the allegations and would file a response in court.
HOTELS reached out to Kingdom for comment but a representative said they could not comment at this time.
Sahara earlier this month agreed to sell for US$600 million the Plaza to Shahal Khan, founder of Dubai-based family office White City Ventures, and Kamran Hakim, of New York landlord Hakim Organization. Days later, Ashkenazy and Kingdom countered with their matching offer.
Ashkenazy and Kingdom, which each own 12.5% of the Plaza, said in the complaint that Khan and Hakim have been soliciting financing for the purchase with Sahara’s knowledge, which has interfered with their own ability to seek funding to purchase the hotel.