Saturday 30 June 2018

New York's Plaza Hotel Has Third Suitor Join Battle for Control - Bloomberg

New York's Plaza Hotel Has Third Suitor Join Battle for Control - Bloomberg:

The storied New York Plaza hotel’s ownership drama has taken another turn. United Capital Real Estate Development Corp. has emerged as a third suitor for the property, according to court filings. United Capital Real Estate is suing Subrata Roy, chairman of Sahara India Pariwar, as well as its U.S. entity, the property’s majority owner, alleging that they breached an agreement by seeking a separate deal, and fraudulently induced United to enter into contracts, show proof of funds and place money in escrow, according to a complaint filed in New York state court on June 22. United Capital Real Estate is seeking damages of $1 billion plus interest and attorney costs. The complaint says it was also in contract to buy Sahara’s 85 percent stake in the Dream Downtown hotel, located between New York’s Meatpacking and Chelsea neighborhoods. It also says the sales included so-called "drag along" rights in which minority owners of the properties would have their rights extinguished, beyond receipt of proportionate net proceeds.

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