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Royale Partners Investment Fund, a Mauritius-based entity with backing from one of the six ruling Sheikh families of UAE, is the likely new owner of Sahara's two luxury hotels in New York (NY).
A deal to buy Sahara's stake in The Plaza and Dream Downtown may have been inked by Royale Partners nearly a fortnight ago, two sources close to the group told BusinessLine .
The deal is estimated to be valued at a little less than $800 million, including the debt. A share purchase agreement is understood to have been already worked out between Sahara and Royale Partners. The buyer may have transferred close to $300 million into a escrow account, the sources said.
The only hurdle for the deal could be the minority shareholders of both NY hotels as they have a first right to refusal.
The Plaza, one of NY's best known landmarks with 230 rooms and the Dream Down Town having 315 loft-style rooms and suits, fell into Sahara's kitty in 2012 for around $550 million.
Then, Bank Of China had extended a combined loan of $465.850 million against both the hotels. This loan now stands at around $550 million and was being financed by another entity. Sahara will be left with $200-250 million post the deal closure and loan repayment, the sources said.
An email query sent to Sahara and Royale Partners remained unanswered. Sahara owns 85 per cent stake in Dream Downtown, which it had bought from celebrated Indian-American businessman Santh Singh Chatwal. It had picked up a 70 per cent stake in The Plaza hotel from Elad Properties, an Israeli-owned real estate company.
Sahara had also bought UK's iconic Grosvenor House Hotel along with the two NY Properties. It sold the UK property this year to an entity known as GH Equity UK.
Earlier, Global Investment House – one of Kuwait's largest investment banks — MBI International that is controlled by billionaire philanthropist Mohamed Bin Issa Al Jaber and the Al Thani royal family of Qatar had offered to buy Sahara's stake in the two NY hotels and UK's Grosvenor House. Sahara was made initial offers of £1.2-1.4 billion by these parties.
US-based Madison Capital too had offered $800 million for just the NY hotels.
Sahara is required to deposit around ₹8,000 crore with SEBI as per order by the Supreme Court. It was alleged that Sahara diverted huge money it raised illegally via chit fund schemes.
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