Saudis in bid for Grosvenor House and Plaza hotels
A Saudi-UK consortium has placed a $1.3bn bid to buy hotels in London and New York owned by Indian billionaire Subrata Roy
A Saudi-UK consortium has placed a bid to buy hotels in London and New York owned by Indian billionaire Subrata Roy.
A $1.3bn bid for London’s Grosvenor House Hotel and a majority stake in New York’s Plaza — owned by jailed Indian businessman Subrata Roy — was made by a consortium of Saudi and UK family wealth funds.
The consortium comprises a Saudi family that runs a private wealth fund in Dubai and UK family office, 3 Associates. The bid also include buying Dream Downtown hotel in New York.
Roy’s company, Sahara India Pariwar group, bought the Grosvenor House Hotel from the Royal Bank of Scotland in 2010 for $615m.
However, the offer may spark a war between the Saudi-UK consortium and Qatar Investment Authority, who were reported to be in discussions over a deal for Grosvenor House Hotel for an estimated $337m earlier this month.
UK media reports say the competing bids were submitted following the weakened value of sterling following the UK’s vote to leave the European Union.
"Because of the currency fluctuation we felt this was the right time to move on these assets,” Jesdev Saggar, managing director of 3 Associates, told the Telegraph.
"With all the uncertainty in the commercial property market since the vote, it's important that we don't lose sight of opportunities in London with regards to where the dollar is. Evidently we have selfish reasons for owning these assets, but it's important that the market understands that there is a tremendous amount of confidence in the London market."