Nochi Dankner
Photo: Vardi Kahana
Yitzhak Tshuva
Dankner, Tshuva seal Las Vegas deal
Israeli tycoons acquire Las Vegas' New Frontier Hotel which they plan to turn into grandiose Plaza Hotel complex
Israeli tycoons Yitzhak Tshuva and Nochi Dankner purchased the New Frontier hotel in Las Vegas for $1.4 billion, the first step towards their grandiose Plaza Center casino and hotel project.
Under the tycoon's plan, the New Frontier will give way to a 3,500-room hotel that also has 300 private residences, a shopping mall and a conference center in an investment estimated at over $6 billion.
Under an initial agreement between the two businessmen, Tshuva's Elad Group Inc would control 52.5 percent of the project while Dankner's Property and Building, a subsidiary of his IDB Holding Corp. Ltd., would own 47.5 percent. But associates said Saturday that Dankner paid Tshuva $75 million for an equal share in the project, 50 percent each.
The Credit Suisse and Goldman Sachs groups provided a $625 million loan for the purchase of the New Frontier. An offer for an additional $200 million high-interest loan was rejected by the two companies.
