Posts Tagged ‘trump tower’
[URBAN NOTE] “Troubled Trump Tower in Toronto likely will go to owner of $301-million construction loan”
The Financial Post carries Alastair Sharp’s Reuters report noting that debt-laden Trump Tower here in Toronto has not received any bids, and that the bank that is its main debt holder is likely to take the building.
The court-run sale of a downtown Toronto high-rise bearing the name of U.S. President Donald Trump received no initial bids and ownership will likely fall to its main debt holder, a letter from the receiver showed.
The court process only indirectly involves Trump, whose sprawling business empire licenses its brand and manages the Toronto property on behalf of the developer, Talon International Inc. But the Trump International Hotel & Tower’s new owner will need to navigate an unresolved dispute over whether they can get out of that arrangement.
No qualified bids apart from a stalking horse offer of $298 million were received for the luxury hotel and condo property by an initial deadline, the receiver, FTI Consulting, said in a letter dated Feb. 21 and seen by Reuters on Monday.
“As a result, the Receiver has determined that the Stalking Horse Bidder is the Successful Bidder,” the letter said.
With no rival bidders emerging, the hotel’s ownership will likely fall to JCF Capital ULC, which on Sept. 29 bought the $301 million owed on the tower’s construction loan, before quickly moving to initiate the sale process.
The Toronto Star‘s Michael Lewis reports on a lawsuit lodged by Trump Tower’s investors against Trump. This is good: Anything that will get this fucker’s name off the map of my city is a good thing.
Republican presidential nominee Donald Trump could be in the sights of investors who lost money on units in Toronto’s glitzy Trump hotel and condo project, even though the property is a Trump development in name only.
Mitchell Wine, a lawyer representing plaintiffs who bought Trump hotel suites with the hopes of renting them out for profit, said if a receiver sells the complex as expected for less than the amount of the defaulted mortgage — and if funds cannot be recovered from the developers — damages could be sought from individuals connected to the project.
“We’d have to take really hard look at everyone else,” Wine said Friday, after the Ontario Superior Court of Justice earlier in the week approved the appointment of a receiver to oversee the sale of the Trump International Hotel and Tower and Trump Residences.
The receiver said it is prepared to submit an offer if no other party steps up with a bid greater than the $301-million senior indebtedness.
The hotel portion of the project is managed by the Trump Organization, which has licensed its brand but has no equity interest in the property, according to a lawyer for Talon International, the Ontario investment group that developed the project.
Huffington Post Canada’s Daniel Tencer reports on the good news. I want this man’s name out of my city’s maps, thank you.
The Globe and Mail reports that the Trump International Hotel & Tower Toronto is on the verge of being sold to an unnamed new owner after its current one failed to pay back a $260-million construction loan last year.
The sale will likely mean the Trump name will disappear from the building.
Donald Trump himself doesn’t own the Toronto tower — it belongs to Talon Developments, which licensed the Trump brand for the skyscraper, and hired a Trump-owned company to run the property.
Talon’s clients are “no longer interested in the Trump brand” because Trump himself has damaged it, company lawyer Symon Zucker said.
“It’s more important for him to be president than run a successful business,” Zucker told the Toronto Star last month.
VICE‘s Tamara Khandaker reports that, owing to debt and other issues, not only is Toronto’s Trump Tower up for sale, its name might be changed. I’m quite good with both, especially the latter: I want Trump’s name off of my city’s map.
As Donald Trump continues to make his ascent in US politics, having secured enough delegates to capture the Republican presidential nomination, his presence in the Toronto skyline is in danger of being erased as the owners of his namesake hotel look for someone to take the property off their hands.
The Trump International Hotel & Tower, which houses 261 hotel units and 118 condo units, has been on the market for about a year, and according to the lawyer for the real estate company that owns the building, a deal is currently in the works.
“A letter of intent has been signed, and they’re doing their due diligence,” said Symon Zucker, who represents owner of Talon International Development Inc., Alex Schnaider.
Zucker wouldn’t reveal the identity of the bidder, but says it’s surprising that efforts to sell the building, which has been marketed actively for the past while, are suddenly newsworthy.
Shnaider and Raiffeisen Bank International, which loaned his company $310 million — $260 million went into default last summer — for the construction of the 65-storey building, could also put the tower into creditor protection and terminate their contract with the Trump-owned management company that operates the hotel.