Trump Toronto Tower’s Lender Said to Garner Investor Interest

  • Bluesky, Great Eagle said among funds interested in property
  • Court-appointed receiver to seek approval for sale process

Toronto’s Trump International Hotel & Tower hasn’t even hit the market yet, but several investors have already been in contact with its debt holder to express interest in purchasing the property, people with knowledge of the matter said.

The owner of the debt, JCF Capital ULC, has spoken with at least five companies that may want to buy the 65-story hotel and condominium building, including Bluesky Hotels and Resorts Inc., which is said to be tied to China’s Anbang Insurance Group Co., and Hong Kong-based Great Eagle Holdings Ltd., according to the people, who asked not to be identified because the talks are private. U.S. President-elect Donald Trump’s Trump Organization licenses its name to the building and manages it.

JCF Capital is seeking to sell the property to recoup C$301 million ($224 million) in construction debt that developer Talon International Inc. defaulted on. This month, a judge appointed a receiver, who will seek approval for a sale process in an Ontario court in the coming weeks.

JCF Capital and Great Eagle declined to comment. A Bluesky executive wasn’t available to comment. The discussions are preliminary and any transaction depends on the outcome of the court-supervised sales process, the people said. 

Chinese Investors

Chinese investors have been buying up real estate in large global cities, seeking stability as their home country faces stock-market gyrations, a fluctuating currency and limiting capital rules. The Trump tower in Toronto is located in a prime location in the city’s financial core.

Great Eagle is run by Chairman Lo Ka Shui and owns hotel operator Langham Hospitality Group, with properties in London and Hong Kong. Bluesky is a firm incorporated in Canada, backed by capital from Hong Kong. It’s headed by Li Chen, who was formerly employed at Anbang and acted on behalf of the insurer during the acquisition this year of InnVest Real Estate Investment Trust, people with knowledge of the matter said at the time.

Other recent deals by Chinese buyers in Canada include Anbang’s C$1 billion purchase of the Bentall Centre in Vancouver. The Beijing-based insurer is set to purchase an office and retail complex in Toronto that has the government of Ontario as a major tenant, according to people familiar with the deal.

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