Most of New York City's Plaza Hotel was recently purchased by the Sahara Group for $570 million, as the Indian commercial real estate firm now holds a controlling stake in the landmark property.
The hotel, which is 105 years old and located at Central Park, had split ownership between Elad Properties and Kingdom Holdings. With the sale, Elad earned 1.6 billion shekels (USD $400 million) for its 60 percent interest in the property, according to Reuters. Kingdom Holdings earned the other $170 million in the sale. The company will own a 25 percent stake in the property once Sahara takes over the majority of the property.
With the new ownership setup, Elad's Fairmount Hotels & Resorts will manage building operations, as it has done since 1999, the news source explained. Yitzhak Tshuva, the owner of Elad, purchased the property in 2004 for $675 million.
Elad has already sold apartments in the hotel for a total of $1.5 billion, the news source added. This eliminated any debt and helped the firm earn $500 million.