Cleary Gottlieb represented Istithmar PJSC in the $285 million acquisition of the 270-room W Hotel Union Square from a joint venture comprised of Related Companies and Multi-Employer Property Trust. The purchase was financed with a $245 million debt package from Credit Suisse consisting of a mortgage loan and three tranches of mezzanine loans. The transaction closed on October 4, 2006.
Istithmar is a major investment house based in Dubai focusing on private equity, real estate and other alternative investments. Istithmar’s purchase of the W Hotel marks Istithmar’s fifth consecutive acquisition of a renowned New York property in the past year. Earlier this year, Istithmar bought the Bankers Trust Building (280 Park Avenue), a vacant parcel of land for development adjacent to the Knickerbocker Hotel at 6 Times Square (which is also under contract to be purchased by Istithmar next February) and the office building at 450 Lexington Avenue. In November 2005, Istithmar made its first New York City acquisition when it acquired the landmark Helmsley Building, an office tower located at 230 Park Avenue. Cleary Gottlieb represented Istithmar in each of these transactions. The W Hotel Union Square is managed by Starwood Hotels.