No bidders make offers to buy Trump tower in Toronto

Mon Mar 6, 2017 11:47am EST
 
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By Alastair Sharp

TORONTO (Reuters) - 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 C$298 million ($222.5 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 C$301 million owed on the tower's construction loan, before quickly moving to initiate the sale process.

A hearing to approve the sale is expected on March 30, a lawyer for JCF said.

JCF is represented by Jay Wolf, founder of Juniper Capital Partners LLC, an investment firm that says it targets distressed or out-of-favor assets with attractive valuations.

While the building in Toronto's financial district has been beset by problems since it opened its doors in 2012, the broader Toronto hotel market has boomed.   Continued...

 
Toronto police place construction cones to close off streets surrounding Trump International Hotel and Tower in Toronto, Ontario early March 24, 2012 after glass panels fell off the building that is under construction on upper floors. REUTERS/Hyungwon Kang