Democrats question potential office tower deal between Kushner, Chinese conglomerate
- Author: Larry Hoffman Mar 30, 2017,
Mar 30, 2017, 8:49
"Kushner Companies is no longer in discussions with Anbang about 666 Fifth Avenue's potential redevelopment, and our firms have mutually agreed to end talks regarding the property", a spokesman for Kushner said.
The Chinese conglomerate Anbang and the family of Jared Kushner have called off talks to redevelop a Manhattan office tower.
"This deal, if executed, would appear to present a clear conflict of interest for Jared Kushner, the son-in-law of President Trump and a senior White House advisor", they wrote, citing a New York Times report that Anbang chairman Wu Xiaohui and Jared Kushner met shortly after President Trump won the election.
Negotiations between NY real-estate developer Kushner Cos. and a large Chinese company over a planned $7.5 billion tower in Manhattan collapsed amid an outcry over possible conflicts of interest involving the Trump administration. Renovating the building with Anbang would've been the Kushner family's attempts to make it more profitable.
Though media pressure was likely a significant factor, so, too, was a letter written by five Democratic Lawmakers last week to a White House lawyer in which they referred to the intra-coutry deal as "highly troubling". It was a big leap for a company previously associated mostly with garden apartments in the NY suburbs. He said that Kushner Companies is still negotiating with other potential investors. It soon became apparent that Kushner had overpaid.
The second letter sent to the White House Counsel requested a clarification about the extent of Kusher's involvement in the deal and additional details regarding Kushner's divestments from his company.
The potential $4bn (£3.2bn) investment deal would have netted Kushner Companies more than $400m, Bloomberg had earlier reported. The company struggled during the financial crisis under debt taken on for the purchase. It purchased the Waldorf Astoria Hotel in NY, and it owns many other assets.
The Kushner family owns or manages 20,000 apartments, 13 million square feet of office space and industrial properties several states, including New York, New Jersey, Maryland and IL.