3 hotels can fetch Sahara maximum $1.67 bn: Mirach

  • PTI, new york
  • Updated: Feb 08, 2015 23:32 IST

As the blame-game continues over their floundered deal, US-based Mirach Capital has claimed that Sahara’s three overseas hotels can fetch a maximum $1.67 billion (about Rs 10,187 crore).

“By conservative estimates, the three offshore properties could be worth $700 million and by best efforts basis as much as $1.67 billion collectively,” Mirach Capital CEO Saransh Sharma said.

Mirach had offered Sahara a loan of $1.5 billion (Rs 9,150 crore) against a collateral of the group’s premium hotels in New York and London, in order to repay investors — a pre-condition for giving jailed Sahara chief Subrata Roy bail.

The three iconic hotels —The Plaza and Dream Downtown in New York and Grosvenor House in London — were acquired by the Sahara group between 2010 and 2012 for an estimated $1.55 billion.

Market experts, however, peg the overseas hotels’ current valuation at upwards of $2.2 billion (about Rs 13,420 crore), after taking into account the appreciation in their values.

Sahara has accused Sharma, who was being seen as a white-knight arranging necessary funds for the group, of presenting forged documents to prove his ability to pay for the deal, a move seen by Mirach as a “breach of contract”.

While both parties have warned each other of legal action, sources said Mirach is still trying to reach out to the Sahara group for reviving their deal and is also open to the idea of depositing the necessary funds directly with Bank of China, from which the crisis-hit Indian group has taken a loan.

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