Trump organization ends management of Toronto tower
- Author: Eleanor Harrison Jun 28, 2017,
Jun 28, 2017, 1:30
The amount of the deal was not disclosed. The 65-storey hotel and condo in the heart of Canada's financial district has been plagued with problems, starting with slow construction, a delayed opening, financial woes, investor lawsuits and bad press.
Trump never held an ownership stake in the Toronto building. But by the time it opened in 2012, it would face increased competition from other high-end hotels, such as Ritz-Carlton, Shangri-La and Four Seasons.
Local media said the new owner acquired hundreds of unsold hotel units, residential units and retail space after the development defaulted on a construction loan. Some investors sued Talon for misrepresenting the investments.
JCF declined to say why the company bought out the management contracts.
The US firm is a joint venture between Juniper Capital Partners LLC and Cowie Capital Partners Inc.
Sources told Reuters earlier in June that Marriott International Inc's (MAR.O) St. Regis brand was the lead bidder to take over the brand and management rights, with one saying that the Trump Organization had agreed to sever its connections.
JCF Capital acquired the tower with the Trump brand and agreements in place past year from former owner Talon International Development Corp., the developer run by Russian-Canadian billionaire Alex Shnaider.
Trump opened a hotel and residence in Vancouver earlier this year.