Kingdom Holding to retain Plaza stake

Prince Alwaleed bin Talal’s Kingdom Holding Co., Riyadh, Saudi Arabia, plans to retain its 50% stake in The Plaza’s 130 hotel rooms and 25% stake in the 100 condominium units regardless of whether El Ad Group, a subsidiary of conglomerate Delek Group, Netanya, Israel, sells its portion.

Sahara India Pariwar, Lucknow, India, gave El Ad Group a US$600 million offer for its share of the iconic New York City property last week. The aggregate consideration for the property was in two parts, of which the hotel part of 100 condominium rooms and 130 large-size non-condominium rooms is being valued at US$400 million. A separate retail space area is being valued at US$200 million.

“The quoted price for the rooms portion of US$400M for 230 units appears somewhat pricey and I believe would be a record high for New York. However the opportunity to acquire a truly iconic landmark doesn’t occur very often,” said John Fox, senior vice president at the New York City office of PKF Consulting USA.

The Plaza is currently managed by Fairmont Hotels & Resorts, Toronto.