Despite suffering heavy losses on certain U.S. property projects, Israeli tycoon Yitzhak Tshuva has not soured on the States. His privately held company Elad Group has partnered with U.S.-based Silverstein Properties in buying a plot of land in Manhattan from the Carlyle Group for $170 million. The companies plan to invest about $650 million in building a residential and commercial project called Riverside Center, with more than 660 apartments.
The Real Deal offered Carlyle's original investment in the project:
Carlyle and Extell bought an undeveloped portion of Donald Trump’s Riverside South development from his Hong Kong-based partners in 2005, for $1.76 million, and planned to build the five-building complex, which includes a school, on part of it.
The project changed numerous times. Carlyle sold it as designed by an internationally renowned architect. The first building approved has a local New York architect. In PEU fashion the project qualifies for an 80/20 tax abatement.
It's not clear how much land Israeli Tycoon Yitzhak Tshuva purchased for $170 million. Tshuva could've paid 100 times Carlyle's original investment for a subplot. Carlyle's website is silent on the sale.
Carlyle profits handsomely, minimizes taxes and keeps their good name. It's a PEU world.