Hollinger International is selling its stake in the joint venture to redevelop the Chicago Sun-Times building into Trump International Hotel & Tower for $73 million. Trump International will then have full control of the project at 401 N. Wabash.
Hollinger International, the parent company of the Chicago Sun-Times, has been enmeshed in lawsuits alleging that former Chairman Conrad Black and former President David Radler bilked the company out of more than $200 million.
Under the terms of the agreement, Hollinger will receive $4 million in cash with the balance of $69 million in cash received at closing, for a total of $73 million for the property and its stake in the joint venture. The transaction is expected to close shortly after the Sun-Times relocates to new headquarters, at 350 N. Orleans, in September.
Sales at Trump Tower already have been swift, with nearly $500 million in sales since the project was announced in September 2003. The 90-story tower will have 461 condos and 227 hotel condos, in addition to a 60,000 square foot health club and spa, two ballrooms, a conference center and retail shops.
Hollinger International said that the transaction, when completed, will result in a pre-tax gain of approximately $37.5 million.
“This agreement marks a strong return on the investment that our company has made in this project, and more than fully reflects the value of the prime real estate that the Sun-Times currently occupies,” said Gordon Paris, interim chairman and chief executive officer of Hollinger International.