The sale of Toronto’s Trump Tower failed to attract a single bid from anyone except the lender that owns its debt, according to news reports.
Plagued by years of financial losses, the Trump International Hotel & Tower Toronto went into receivership last year, after defaulting on a C$260-million loan.
Donald Trump at the ground-breaking of the Trump International Hotel and Tower Toronto. (Photo: Michael Stuparyk/Toronto Star via Getty Images)
A court-ordered sale of the building started with an initial bid of C$298 million, slightly less than the $301-million mortgage on the property. That “stalking-horse” bid came from JFC Capital, which owns the building’s debt.
Because no other bids came in, “the Receiver has determined that the Stalking Horse Bidder is the Successful Bidder,” said a letter from FTI Consulting, as quoted at Reuters. FTI oversaw the sale.
An artist's rendering of the Toronto Trump Tower. (Image: Talon International)
U.S. President Donald Trump doesn’t own the hotel. It’s owned by developer Talon International, which licensed the Trump brand and hired the Trump Organization to manage the facility.
All the same, a court ruled last fall that Trump himself can be sued over the project by investors who allege they lost money after being misled into purchasing condos or hotel rooms in the building.
The hotel, which has been the site of multiple protests since Trump’s election, has been plagued with technical problems and low hotel room occupancy.
Talon head Alex Shnaider predicted last year the Trump brand would come off the building after it's sold.
Also on HuffPost