Real Estate

South Street Seaport owner buys stake in Jean-Georges restaurant empire

The Howard Hughes Corp., which operates the Seaport advanced on South Street, is placing its money – a whopping $55 million — the place its mouth is.

Hughes simply purchased a 25 p.c stake in Jean-Georges Restaurants (JGR), the 40-eatery empire of the good New York chef Jean-Georges Vongerichten. His native locations embrace flagship Jean-Georges, Nougatine, The Fulton on the Seaport, ABC Kitchen, Jo-Jo and The Mark.

On prime of $45 million Hughes is paying for the minority stake, it additionally ponied up $10 million extra for an possibility to purchase 20 p.c extra of Vongerichten’s company. It is perhaps the most important stake owned by a single actual property company in a restaurant group.

The Tin Building on the Seaport, to partially open this month, is Vongerichten’s largest enterprise thus far. Its success is essential to Hughes’ future fortunes on the Seaport, which — to some analysts’ shock — it held onto when it bought off $2 billion of “non-core” belongings two years in the past.

The Tin Building is a 53,000, three-level gourmand meals corridor and restaurant assortment contained in the historic landmark constructing which Hughes paid a fortune to reconstruct  30 ft east of its authentic East River web site.

The Tin Building is essential to Hughes’ future fortunes on the Seaport, which — to some analysts’ shock — it held onto when it bought off $2 billion of “non-core” belongings two years in the past.

Hughes was fast to notice that Vongerichten’s administration workforce “will retain control of all day-to-day decision-making.”

But the businesses are clearly companions in what’s hardly a passive funding. Hughes stated it intends to fund development capital for Vongerichten’s “expanding global empire.” 

Publicly-traded Hughes’ 10-Q SEC submitting for the second quarter additionally revealed that Hughes owns the Tin Building outright and leases it to Vongerichten.

 Hughes paid for each dime of the Tin Building’s improvement and building and in addition contributes money to fund pre-opening, opening and working prices.

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