The billionaire Reuben brothers, David and Simon, have bought London’s iconic Hotel Grosvenor House along with two other New York hotels in an 850 million negotiated debt deal. The three hotels were part of a loan portfolio held by India’s Sahara group, run by controversial businessman Subrata Roy. The mega-debt deal averts a ‘default-triggered’ sale and comes as a relief to industrialist Roy, presently in Indian jail.
Earlier this year, Bank of China had placed Grosvenor House for sale after Roy defaulted on his loan. A leading Indian Newspaper described the deal as the largest negotiated transaction made from inside a prison.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at email@example.com.
According to the statement released by Sahara group, “A team led by the group chairman [Subrata Roy] has successfully negotiated a last-minute deal with Reuben Brothers, which is now in the final stage of taking over the loan portfolio from Bank of China. The other properties owned by the group are the New York Plaza hotel and the New York Dream hotel.”
In 1990, Reuben Brothers made a large fortune from investments in ther Russian and Kazakh metals industry. By the mid-1990s their company Transworld Metals’ revenues crossed $8 billion and it reportedly controlled 7 percent of the global aluminium trade. However, by 2000, the brothers sold their Russian assets and focused on real estate portfolios.
Today, the diversified investments of Reuben Brother’s investment form include data centers, racecourses, pub companies, aerodromes, technology and media. Since 2008, Reuben Brothers have returned to commodity business and increased their mining portfolio in Africa and Far-East Asia. They also holds interests in energy and shipping sector.
According to Forbes, Mumbai-born David and Simon Reuben have a net worth of about $14 billion. David lives in Monaco and Florida, whereas Simon is based solely in Monaco. In 2002, the Reuben Foundation was created, the philanthropic arm of the investment company funds projects in healthcare and education across the world.