Ron Perelman’s bad loan is for sale
Last year, billionaire Ron Perelman – troubled by Revlon debts and falling fortunes – searched “Clean and simplify the house.”
That began a sale of his assets, including works of art, one of his three Gulfstream jets, and several high-priced homes, with some proceeds going to pay off debts he personally guaranteed.
Now one of Perelman’s lenders is trying to sell off bad loans with a balance of $ 193 million. The only true have learned.
A Cushman & Wakefield capital markets team is marketing Citibank notes backed by three adjoining Perelman properties on East 62nd Street, including its duplex residence. The brokerage house and Citibank both declined to comment on the sale.
A spokesman for Perelman’s investment firm MacAndrews & Forbes said the issue was related to “assessments conducted in June 2020 during the pandemic,” adding that “we are in a trade dispute over certain terms of our banking contracts and their use are “. of incorrect reviews. “
The three mixed-use buildings at 27-33, 35 and 41 East 62nd Street cover a total of 106,000 square feet and are subject to a master lease. Properties include Perelman’s sprawling duplex penthouse; a restaurant, Fleming, which he opened in 2018; and the offices of MacAndrews & Forbes.
The loans, due on August 31, 2023, are backed by “Sponsorship Guarantees” which, according to the “East 62nd Street Townhouse Collection” marketing materials, can only be accessed after a confidentiality agreement has been signed. The grades can be acquired individually or together.
Perelman’s art and antiques are not used as collateral for the loan, according to previous mortgage documents.
Perelman acquired the three properties over several decades. The 10-story building at 27-33 East 62nd Street was previously an apartment building that Perelman eventually converted for mixed use. He paid $ 120 million for the property in 2014 and took out a $ 110 million loan in 2018 that included $ 41 million in new financing. The building is responsible for approximately $ 103 million of outstanding debt.
No. 35 is a six story property that houses the MacAndrews & Forbes offices. Perelman bought this building in 1989 and it has approximately $ 52 million in outstanding debt. The final lot, # 41, is responsible for nearly $ 38 million in debt.
Perelman’s businesses were negatively impacted by the pandemic, resulting in the loss of his personal and professional assets.
“I’ve made my intentions to reduce debt, streamline operations, sell some assets and convert those assets into cash very publicly in order to find new investment opportunities, and that is exactly what we are doing,” he said in one last year Explanation.
These assets include two properties on East 63rd Street, marketed by Serena Boardman of Sotheby’s International Realty. Perelman reportedly wanted $ 65 million for the larger of the two buildings and $ 10 million for the other. Boardman did not immediately respond to a request for comment.
Last fall, he was supposedly too looking for a buyer for “The Creeks,” a 57 acre property in East Hampton, on a whisper list for $ 180 million. Perelman’s spokesman denies the property was ever for sale.