United Capital Real Estate Development Corp. has emerged as a third suitor for the New York Plaza hotel, according to court filings, Bloomberg News reported. United Capital Real Estate is suing Subrata Roy, chairman of Sahara India Pariwar, as well as its U.S. entity, the property’s majority owner, alleging that they breached an agreement by seeking a separate deal, and fraudulently induced United to enter into contracts, show proof of funds and place money in escrow, according to a complaint filed in New York state court on June 22. United Capital Real Estate is seeking damages of $1 billion plus interest and attorney costs. The complaint says it was also in contract to buy Sahara’s 85 percent stake in the Dream Downtown hotel, located between New York’s Meatpacking and Chelsea neighborhoods. It also says the sales included so-called "drag along" rights in which minority owners of the properties would have their rights extinguished, beyond receipt of proportionate net proceeds. Roy himself signed two separate contracts on Feb. 19 and Feb. 27 on behalf of Sahara, the complaint says. Sahara has been attempting to sell its stake for years amid troubles for Roy, who served jail time and has been ordered by the Indian government to return billions of dollars to investors. The hotel has a long string of prior owners including now-President Donald J. Trump, who married his second wife Marla Maples there, and who was also forced to sell it to a group including Alwaleed more than two decades ago as part of a bankruptcy proceeding. Much of the hotel portion of the building was later converted to condominiums by another owner, Israel’s Elad Group. The hotel is managed by Fairmont Hotels & Resorts, a unit of France’s Accor SA.
