Reliance Industries Limited (RIL) is paying nearly $100 million for a majority stake in Mandarin Oriental New York, a five-star downtown Manhattan hotel, through the purchase of its parent company in the Cayman Islands.
Reliance said in a filing on Saturday (Jan. 8) that its industrial investment subsidiary will acquire Cayman Islands-based Columbus Center Corp. (Cayman) for equity capital of approximately $98.15 million.
The company said the acquisition of Columbus Center Corp (Cayman), an indirect owner of a 73.37 percent stake in Mandarin Oriental New York, by Reliance Industrial Investments and Holdings Ltd, would add to its consumer and hospitality businesses.
Completion of the transaction is expected by the end of March 2022, the company said.
It added that in the event other owners of the hotel choose to participate in the transaction, its subsidiary would acquire the remaining 26.63 percent stake, based on the same valuation used to acquire the property. indirect stake of 73.37 percent.
Established in 2003, Mandarin Oriental, New York, is an iconic luxury hotel located at 80 Columbus Circle, directly adjacent to pristine Central Park and Columbus Circle.