The hotel, which was built in 1980, was once considered by Sunland as a major redevelopment project which would have included two towers and cost about $370 million.
But Sunland is now liquidating all its assets and returning funds to shareholders.
It said it had received eight bids for the hotel which had varying bids and conditions, but the winner had been Arium Group, a company established in December and in which Sunland’s executive chairman Soheil Abedian and manging director Sahba Abedian had an interest.
Records show Sahba Abedian is a director of Arium and the ownership is split between three companies, Abedian P/L, Naveh P/L and Rezvani Corporation.
An independent group of directors reviewed all the bids and consider the legal implications of selling to a related party and it was decided that the deal would have to be approved by shareholders. Sahba Abedian has a direct interest in 51 million shares and Soheil has an indirect interest in 9 million.
Sunland said the deal would generate an after-tax profit of $7.1 million.
The site is considered a prime redevelopment prospect and Sunland last year sold an adjoining block for about $12 million.Jump to next article