Saudi Prince Alwaleed bin Talal's Kingdom Holding Co and US-based Ashkenazy Acquisition have exercised their right of first refusal to match a $600m offer to buy New York’s Plaza Hotel.
The move would scuttle another group’s agreement to buy the property, said a source with knowledge of the matter, according to a Bloomberg report.
The two parties have less than two weeks to come up with a deposit and proof of funds for the total or their deal will be cancelled, the source said, whom had asked for anonymity on the subject.
A cancellation would reinstate the earlier agreement, signed by Shahal Khan and Kamran Hakim, said the source. The exercise of the option was reported earlier Tuesday by the New York Post.
Ashkenazy, led by billionaire founder Ben Ashkenazy and vice chairman Michael Alpert, acquired a minority stake in the hotel and the right to buy the property last May.
Last week, Khan, founder of Dubai-based family office White City Ventures, confirmed that he had an agreement to acquire the hotel along with Hakim, of New York landlord Hakim Organization.
They agreed to pay $600m for the hotel in a deal that was set to be completed on 25 June, and talked up plans to use the hotel to launch a global brand.
Listed on the stock exchange in July 2007, Kingdom Holding is currently developing the Jeddah Tower, a 1km-high skyscraper that will be one of the tallest in the world upon its completion.