|
The Bank of China has seized control of London’s Grosvenor House from Sahara Group appointed an administrator to sell the property.
The Bank of China has seized control of London’s Grosvenor House from its Indian owner and appointed an administrator to begin marketing the property for sale. The move follows default last year by the owner, Sahara Group, on Bank of China loans for the Grosvenor House, New York’s Plaza Hotel and the Dream Hotel in downtown Manhattan. Under U.K. law, a lender has the ability to take control of a property in default and appoint an administrator to sell the property. Money raised from the sale will go first toward paying back all lenders, and then any remaining proceeds would go to the owner. Some hotel analysts suggested the bank would have an easier time finding a buyer for Grosvenor House than for the New York properties. Bank of China couldn’t be reached for comment. For one, Saudi Prince al-Waleed bin Talal owns a minority stake in the Plaza and would be in position to influence or even block a sale of the controlling stake. The U.S. foreclosure process following a default can also be more cumbersome and time-consuming than the equivalent process in the U.K. |
