SOL Zakay’s Topland Group has emerged as the latest possible suitor for embattled Harry Macklowe’s trophy buildings.
Topland is the UK-based operating unit of privately held Topland Group Holdings.
Its $8 billion portfolio includes 78 Marks & Spencer stores and office buildings in London – among them, Merrill Lynch’s King William Street headquarters.
Topland has yet to submit a formal bid. Jones Lang LaSalle’s Douglas Neye, who’s said to be advising Topland, had no comment.
No one really knows what’s going on inside Macklowe’s talks with lenders and with prospective buyers of the GM Building and other holdings.
Several months and deadlines have passed without a resolution.
Macklowe needs to pay off $7 billion in short-term debt on buildings he bought last year from Equity Office Properties via The Blackstone Group – or face foreclosure on the GM Building, which he bought in 2003 for $1.4 billion and which he pledged against the loans.
The credit crunch that struck last fall left Macklowe unable to pay back $1.35 billion to Fortress Investment Group and $5.8 billion to his long-time lender, Deutsche Bank.
Sources in London and New York say Topland is not interested in the former EOP buildings – now controlled by Deutsche and up for sale through Eastdil and Cushman & Wakefield.
Rather, Topland is closely studying a “bundle” that would include GM and seven other properties Macklowe owned prior to buying the EOP portfolio – including well-known addresses 1330 Sixth Ave. and 2 Grand Central Tower.
The buildings Topland is eyeing, including the GM Building, are being marketed by Citigroup and CB Richard Ellis.
Both Eastdil and Cushman & Wakefield declined comment.
Through a spokesman, Macklowe had no comment. Topland representatives could not be reached.
Harry Macklowe and his son and partner, Billy, are fighting to hold onto the 2 million square-foot GM Building.
They’re seeking partners for it while simultaneously weighing a sale of either the EOP properties or of their earlier holdings, or a combination of the three.
“All kinds of varieties of deals are being offered,” said a New York investment-sale source.
Last week, my colleague Lois Weiss reported one option was a sale of a 50 percent stake in his company.
Sources said Topland is not interested in a minority stake that would let the Macklowes keep control.
“These people want to buy in America,” a source said. “They’re cash-rich, the dollar is cheap, and Sol Zakay has openly talked about going on a global spending spree. With Macklowe, they smell blood in the water.”
Although Deutsche has agreed to give Macklowe until early 2010 to repay, expecting the former EOP holdings to be sold, Fortress is said to have given Macklowe only until July to make a deal – or else.
Previously, Larry Silverstein, Boston Properties, Brookfield, investor Joseph Cayre and various offshore companies have all been reported to be kicking the tires.
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Goldman Sachs, which will move into its new Battery Park City headquarters late next year, is talking to insurer AIG about a deal with potentially monumen tal repercussions.
Several sources said Goldman is close to a deal to assign its lease at Joseph Moinian’s 180 Maiden Lane, one of several downtown build ings where it’s now based, to AIG. The insurer would then make its headquarters there – and put its longtime home at 70 Pine St. up for sale.
The 70 Pine tower, originally built for Cities Service, is a masterpiece that isn’t a designated city landmark but should be. Its Deco-detailed crown has been a skyline fixture since it was built in the early 1930s.
Downtown types speculated 70 Pine would lend itself to residential conversion more readily than to further office use.