A group of predominantly Irish investors is set to buy 16 suites in the famous Plaza Hotel on Central Park in New York City in a total investment worth $73.5 million (€50 million), writes Simon Carswell, Finance Correspondent
The investment is being made in two rounds of $34 million and $39.5 million, and is being backed by Anglo Irish Bank, which is providing 88 per cent of the investment to finance the venture.
Accountant Kieran Corrigan, who is organising the investment through a Dublin-based company called Plaza Enterprises, said money had already been raised for the first round. Mr Corrigan is known for raising finance for film productions. He has a long association with director John Boorman.
The Plaza, which was previously owned by Conrad Hilton and Donald Trump, was bought by El-Ad Properties in 2004 for $675 million. More and more owners of upmarket US hotels are selling suites to long-term investors, similar to large-scale residential developments, to fund capital investment.
Of the 282 rooms in the Plaza, 152 are suites which are being sold as "hotel condo units". The hotel, which is operated by Fairmont, will reopen on December 3rd following a $350 million two-year renovation. Private residences at the Plaza achieved a record price of $6,500 a square foot, with one apartment reportedly selling for $50 million in May. Hotel suites range in price from $2 million to $10 million.
Mr Corrigan's firm is seeking investors for eight suites in the second round. The suites are being divided up into 30 units for investment purposes. Investors must put up about €200,000 in equity for each unit, according to an information memorandum prepared by Plaza Enterprises.
