The $4B deal between Kushner Cos. and Chinese insurer Anbang Insurance Group that would have led to a $400M payout for the family of White House senior adviser Jared Kushner has been scuttled.
That is according to a statement from a Kushner Cos. spokesperson, who said the company is no longer in talks with Anbang to redevelop its mixed-use tower at 666 Fifth Ave.
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"Kushner Companies is no longer in discussions with Anbang about 666 Fifth Ave.'s potential redevelopment, and our firms have mutually agreed to end talks regarding the property," the statement reads. "Kushner Companies remains in active, advanced negotiations around 666 Fifth Ave. with a number of potential investors."
The deal had been under negotiations since January and would have resulted in the Kushners taking an equity stake in the new partnership. The deal drew criticism from Democratic lawmakers concerned with a possible conflict of interest for President Donald Trump's son-in-law and adviser, even though a spokesperson told Bloomberg, which first reported the $4B agreement, that Jared Kushner had sold his stake in the tower to his family.
This would have been a "sweetheart deal" for the Kushners considering the troubled history of the tower. The massive redevelopment of 666 Fifth Ave. is estimated to run about $7.5B and would transform the property into a 1,400-foot skyscraper rebranded as 660 Fifth Ave. in Midtown. The property is still a financial burden, and the Kushners will now have to find their way out without the Chinese insurer.
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