Las Vegas Sun

March 19, 2024

Group gets extended Strip loan repayment

New Frontier land owners Elad IDB Las Vegas LLC has reached an agreement to extend a $625 million loan it took to purchase the site for its multi-billion dollar Plaza Las Vegas project.

Reuters reported that under the agreement with the lenders, repayments of the loan would be postponed until August 2012, Israel’s Property and Building Corporation (part of IDB Development) said in a statement.

In August, investment firms Goldman Sachs and Credit Suisse postponed the repayment of the $625 million loan until May of this year. Last month, Property and Building said the start of construction depends on the conditions of the credit market and the group would seek an extension beyond May.

Property Building Development and IDB Development own IDB Group USA Investments, which together with the Elad Group owns Elad IDB Las Vegas.

The Elad group, owned by Israeli billionaire Yizhak Tshuva, owns New York City’s Plaza Hotel and purchased the vacant New Frontier land in May 2007 for $1.2 billion. The development company plans to build Plaza Las Vegas on the land, with the $5 billion project scheduled to be completed in 2012, although no ground has been broken yet.

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