(Corrects to read in first paragraph Sahara buys, not sells)
TEL AVIV, July 30 (Reuters) - India's Sahara Group has
agreed to buy a controlling stake in New York's landmark Plaza
Hotel for $570 million, Elad Properties, an Israeli-owned real
estate company, said on Monday.
The 105-year-old luxury hotel overlooking New York's Central
Park, is jointly owned by Elad Properties, an Israeli-owned real
estate company, and Saudi-based Kingdom Holdings Co.
Elad, controlled by Israeli businessman Yitzhak Tshuva, said
it would receive 1.6 billion shekels ($400 million) for its 60
percent stake, while Kingdom will receive the rest.
Kingdom, the investment vehicle of Saudi billionaire Prince
Alwaleed bin Talal, will hold a 25 percent stake once the deal
is completed, Elad said in a statement.
Elad said Fairmont Hotels & Resorts Inc, which has managed
the hotel since 1999 and which is owned by the Saudi prince,
will continue to operate the property.
Tshuva bought the hotel eight years ago for $675 million.
According to media reports, Elad had sold luxury apartments
in the renovated hotel for $1.5 billion. The sale of the
apartments alone netted Elad Group $500 million in profit.
(Reporting by Steven Scheer and Tova Cohen; editing by Sofina