Lender Group to Acquire Control of Xanadu
Action to Revive Stalled Complex to Result in Comprehensive Makeover and Project Re-Branding
EAST RUTHERFORD, N.J., Aug. 10 /PRNewswire/ -- A consortium of five lenders that hold the secured debt on Xanadu ("the Lender Group") announced today that the Lender Group has exercised its right to acquire control of the project from the previous ownership group ("Previous Owner") in order to facilitate completion of the stalled entertainment and retail complex.
The Lender Group is currently negotiating with several world-class entertainment and retail operators that have the financial resources as well as the leasing and development expertise necessary to successfully complete a project of this magnitude. As part of these negotiations, the new operator will be required to accelerate completion of the project, which will include refinishing the widely criticized exterior of the building and implementing a full re-branding campaign for the project.
Months ago, the Previous Owner and the Lender Group entered into a forbearance agreement to transfer control of the project to the Lender Group if marked progress on the development was not made.
"The transfer of control of this complex to the Lender Group is consistent with Governor Christie and Commission Chair Jon Hanson's commitment to realizing the original promise of this project as a world-class facility and economic driver for Bergen County and the entire State," stated Michael Beckerman, spokesperson for the Lender Group. "This action creates a strong foundation to effect the seamless transfer of ownership in order to complete this project as quickly as possible so that it is open and flourishing as an established visitor destination in advance of the 2014 Super Bowl."
The complex's opening will generate thousands of jobs and tens of millions of dollars in sales and payroll taxes for New Jersey, as well as significant revenue for municipalities in Bergen County through the PILOT program.
Governor Christie has pledged that any state funds committed to the project will be in exchange for an economic interest in the project.
The Lender Group is being advised by leading investment bank Moelis & Company, as well as Sills Cummis & Gross and Weil Gotshal & Manges, LLP.
The project is a five-story entertainment and retail complex under construction in the Meadowlands Sports Complex in East Rutherford, N.J. Once complete, The Meadowlands will be the largest entertainment and retail complex in the nation.
SOURCE Lender Group
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