Dramatic bidding war finally comes to an end
Qatar’s state-owned Katara Holdings has closed on its acquisition of the Plaza Hotel from Subrata Roy’s Sahara Group for $600 million. With this deal, the dramatic saga between three formidable bidders finally comes to an end.
Worth Noting: Saudi Prince Alwaleed Bin Talal and Ashkenazy Acquisition owned a 25 percent stake and had the option to match the highest bid, according to TRD. Ultimately, the former Qatari Prime Minister (HBJ) who held $400 million in debt on the property used the threat of foreclosure as leverage to convert his debt position into equity. This New York style move helped him secure the deal!
Foreign Policy Angle: This is the largest real estate investment Qatar has made since its gulf neighbors imposed economic sanctions for its support of terrorism. Qatar is certainly taking joy in outdueling their rival, Saudi Arabia.