A deal to remove the U.S. president’s name removed from the Toronto’s Trump International Hotel and Tower has been struck by the new owner.
JCF Capital says it has reached an agreement with a unit of the Trump Organization to buy out the management contracts for the property for an undisclosed amount. The property has never been owned by the U.S. president, but his organization licensed his name and operated it. The property has struggled financially and has been the focus of a long-running legal battle after it was opened in 2012.
“We are pleased to have reached this agreement with JCF and have enjoyed our relationship with them as the new owners of this property”, Trump Hotels CEO Eric Danziger said in a statement. “This was a record setting year for the hotel and we are incredibly proud for our performance. We look forward to the possibility of exploring other opportunities with JCF in the near future”.
Protesters, angry about the U.S. president’s policies have been targeting properties bearing his name even the recently opened tower in Vancouver.
“Collectively, Donald Trump Jr., Eric Trump, Eric Danziger and their team have been exceptional partners and we hope to have the pleasure of working with the Trump Organization again in the future”, Jay Wolf, JCF Capital’s president, said in a statement.
Alex Schnaider, who formed the original business relationship with the Trump Organization, built the 65-storey Toronto tower.
His company, Talon international, later defaulted on a loan from an Austrian bank, which sold the loan to JCF Capital.
JCF, a joint venture between Juniper Capital Partners and Cowie Capital Partners, was the successful bidder for the property’s 211 hotel units, 74 residential units and most of its commercial, retail and amenity space. A judge from Ontario approved JCF’s bid of C$298 million to acquire the property in late March.
Last October, an Ontario court ruled in favor of investors who had launched a lawsuit alleging they were misled when they bought units in the residential portion of the tower. The investors scored another victory in March when Canada’s highest court refused to hear an appeal of the ruling.