Magazine article American Banker

Citicorp Group and Trump Agree on Sale of Plaza Hotel to International Investors

Magazine article American Banker

Citicorp Group and Trump Agree on Sale of Plaza Hotel to International Investors

Article excerpt

Symbolizing banks' success in putting real estate problems behind them, an agreement in principal has been reached by developer Donald Trump and his lenders to sell the historic Plaza Hotel in New York to an international investor group.

The agreement, placing a value of $325 million on the property, will reduce the equity stake banks hold from 49% to "somewhere under 20%," according to a banking industry source.

A bank group led by Citicorp, a general partner in the hotel since a 1992 restructuring of a $125 million personal loan to Mr. Trump, now becomes a limited partner.

The buyers have agreed to pay $25 million a year for three years on a $300 million mortgage on the property. Citicorp and Industrial Bank of Japan are co-leaders of that loan.

The investors include CDL International Hotels Ltd., the same group that last year bought the Millenium Hotel from Chase Manhattan Corp. and the Hotel Macklowe from Chemical Banking Corp. …

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