News, Culture & Society

Kushner’s effort to lure investors across the globe

Jared Kushner’s desperate search for investors to help bail out a heavily leveraged investment in a 5th Avenue skyscraper took his family business not only to China but to South Korea, Israel, and France as it scoured the globe.

Kushner companies bought the building at 666 Fifth Ave. in 2006, before rental rates tanked.

The firm took out a $1.2 billion mortgage as the family made its break into Manhattan real estate, putting up just $50 million in 2006.

But the bad bet soon led the company controlled by President Trump’s son-in-law and Kushner’s father into a global search for investors who could help bail out the project, in a global treasure hunt that has yet to succeed, Bloomberg News reported.

Trump son-in-law Jared Kushner participated in an effort to scour the globe for international investors in a family business investment in a Manhattan skyscraper

After many years of seeing payments on the massive debt surpass income on the property, Kushner companies decided that the hope for the investment was to knock it down and replace it with a gleaming new tower.

A deal to have China’s Anbang Insurance Group blew up shortly after the election. The firm had discussed investing $400 million in a deal in a $4 billion transaction that came under public scrutiny because of Kushner’s influential position.

The two sides ‘mutually agreed to end talks regarding the property,’ according to a statement in March.

But the Chinese behemoth was by no means the only foreign investor the Kushner family company explored.

Kushner also met in 2016 with the The Korea Investment Corporation, a South Korean sovereign fund which is controlled by the government in Seoul. It decided not to invest. 

A new report details Kushner company efforts to find foreign investors

A new report details Kushner company efforts to find foreign investors

One potential investor was Bernard Arnault, chairman of LVMG

One potential investor was Bernard Arnault, chairman of LVMG

Wu Xiaohui, chairman and chief executive officer of Anbang Insurance Group Co., speaks during the Boao Forum for Asia Annual Conference 2017 in Boao, China, on Sunday, March 26, 2017

Wu Xiaohui, chairman and chief executive officer of Anbang Insurance Group Co., speaks during the Boao Forum for Asia Annual Conference 2017 in Boao, China, on Sunday, March 26, 2017

A deal with China's Anbang Insurance Group fell through in March

A deal with China’s Anbang Insurance Group fell through in March

The Kushners also sought out investments in Israel. According to the report approaches were made to the Israeli firm Gaia, with Richard Goettlich serving as an intermediary, having met Charles Kushner in prison. The elder Kushner did time after getting convicted of making illegal campaign contributions.

Saudi billionaire Fawaz Alhokair considered investing in 2015, according to the report. Simon Marshall, who was CEO of Alhokair, said the family firm’s projections didn’t work.

Fawaz Alhokair, a Saudi billionaire, was another potential investor

Fawaz Alhokair, a Saudi billionaire, was another potential investor

‘The numbers just didn’t work,’ Marshall said. 

The account describes Charles Kushner’s initial head-long rush to invest in the building as a way to make his mark and burnish his reputation.

‘I buy it, you make it work,’ he said to his accountants,a meeting participant said. 

The detailed analysis by Bloomberg only hints at the unproven possibility that Kushner also pursued Russian investors. 

Another potential investor was Bernard Arnault, CEO of LVMH luxury brand. He is the richest man in France.

Kushner had meetings with Sergey Gorkov, head of the Kremlin-controlled VEB bank,  that he didn’t initially disclose on government forms. But his representatives said it was in his role as a White House advisor, not as part of his business.

Read more at DailyMail.co.uk


Do you like it? Share with your friends!


Comments are closed.