According to a CNBC report, the Gulf state of Qatar signed an agreement to purchase the Plaza Hotel in New York for about $600 million through the state-owned Katara Holding.
Katara will assume full control of the hotel while Sahara India Pariwar will retain a 75 percent interest.
The purchase was made just a few days after Sahara India Pariwar chairman Subrata Roy and Sahara’s U.S. division were sued by United Capital Real Estate Development, alleging they broke a contract by looking for other purchasers for the Plaza Hotel, according to Arabian Business.
In a case submitted on June 22 to a state court in New York, United also claimed that Roy and Sahara U.S. had deceitfully persuaded United to sign contracts, produce financial documentation, and put money in escrow. In addition to interest and legal fees, United is requesting $1 billion in damages for the claims.
Additionally, according to the group’s complaint, United consented to buy Sahara’s 85% ownership of the Dream Downtown hotel in New York. On behalf of his company, Roy signed two contracts for these sales on February 19 and February 27, 2018.
This lawsuit was filed in response to a May 2018 complaint filed by Ashkenazy Acquisition and Kingdom Holding, alleging that their agreement to match an offer had been broken. They accepted a bid of $600 million for a purchase deal that was supposed to close on June 25th, matching the offer made by a company led by Shahal Khan. The president of Sahara U.S., Sandeep Wadhwa, planned to respond in court, stating that he did not agree with Ashkenazy and Kingdom Holding’s assertions. The group hasn’t yet submitted that response, though.
The Plaza Hotel has had multiple owners in the past, including the president of the United States, Donald Trump. When he declared bankruptcy more than 20 years ago, Trump sold the hotel. During its tenure, the Plaza’s majority was turned into condominiums by the Israel-based Elad Group. The property is now managed by AccorHotels under the Fairmont Hotels & Resorts brand.