JPMorgan Chase – Citi Sells Debt Backed by Perelman NYC Properties at Discount
Citigroup Inc. has sold loans secured by three of Ron Perelman’s Manhattan properties at a roughly 40% discount, according to people familiar with the matter.
The loans, which were in default with a balance of $193 million, sold for $115 million, the people said, asking not to be named because the matter is private.
Perelman was once one of the world’s richest people with a fortune worth $19 billion. But in recent years his empire has faced daunting financial challenges, including at his cosmetics giant Revlon Inc.
The debt sold by Citi is backed by three adjacent properties on East 62nd Street and includes the offices of Perelman’s investment firm, his duplex residence and the restaurant Fleming.
The loans mature in August 2023. The buyer was undisclosed.
A Cushman & Wakefield team, led by Doug Harmon and Adam Spies, did the deal for Citigroup. Representatives for Perelman and MacAndrews & Fintech Zoom, Cushman & Wakefield and Citigroup declined to comment.