We have posted an article titled Middle Eastern investors causing a marked shift in London back in October 18th, 2014, and since then much water went below all London bridges. Yesterday The Telegraph published another story on the same subject. Here it is in few words. It is all about Middle Eastern investors chasing London hotels.
The $1.3 billion bid that was submitted early yesterday, came after another rumoured deal from the Qatar Investment Authority (QIA) was proven unfounded. This particular one is however real and involves the purchase tender of no less than the Grosvenor House Hotel amongst other properties of the same repute on both sides of the Atlantic. It is all perhaps due to the present owner’s legal situation; an Indian domiciled Sahara company owner having some trouble with the justice authorities of his country.
As a matter of fact, the bid was put together by a consortium of Saudi and UK Family Wealth Funds and it is feared the offer may spark a bidding war after Sahara revealed it was in talks with Qatari investors over a potential deal.
Meantime, Sahara has a stake in New York’s Plaza Hotel and Dream Downtown Hotel, that would be, in case of the bid is successful, be offered for sale.
London after the 23rd June referendum resulted in notably the Pound Sterling bearing the brunt that coupled with Middle Eastern investor’s running away from low oil price related budget restrictions desperately chasing property of some prestige in London, New York, etc. would explain this conjecture. One more reason if not the most important in the aftermath of the Brexit vote is the relative fall in the UK property market generally, but in London more particularly.
We reproduce excerpts of the article written by Rhiannon Bury for a better appreciation of what’s going on.
A consortium of Middle Eastern and UK family offices has launched a $1.3bn bid to buy hotels owned by jailed Indian businessman Subrata Roy, including the Grosvenor House Hotel on London’s Park Lane.
The bid, which was submitted earlier today, throws into doubt a deal that was being lined up with the Qatar Investment Authority earlier this month and could spark a bidding war for the assets.
Mr Roy’s company Sahara bought the Grosvenor House Hotel in 2010 from the Royal Bank of Scotland for £470m. RBS took control of Grosvenor House in 2003 when Le Meridien, the previous hotel operator, fell into administration.
Sahara also owns a stake in New York’s Plaza Hotel and Dream Downtown Hotel, which would be included in a potential deal.
The new all-equity bid has been submitted by UK-based family office 3 Associates, with cash provided by a family office based in the United Arab Emirates, through agency Knight Frank.