Steve Witkoff [TRDataCustom] and the U.S. Justice Department are moving forward with the sale of The Park Lane Hotel in a deal that cuts out majority owner Jho Low.
Witkoff and Mubadala Development Corp., an Abu Dhabi sovereign wealth fund that bought a portion of Low’s stake, will split the proceeds of the sale, while the government will take Low’s share, the New York Times reported. Marketing books for the property are expected to be released this week, and the sellers are hoping for bids that exceed $1 billion.
“This was the best site in New York City and maybe the world,” Witkoff told the Times. “We designed what the entire partnership thought was a beautiful building. Little did we know we’d face circumstances like this.”
Eastdil Secured is handling the sale.
Low, who provided most of the equity for the $654 million acquisition of the 26-story hotel in 2013, is at the center of a money-laundering scandal. He’s accused of illegally diverting hundreds of millions of dollars from a Malaysian investment fund known as 1MBD to investment in real estate, including The Park Lane. He’s denied wrongdoing. [NYT] — Kathryn Brenzel