SINGAPORE (Oct 9): A penthouse in Manhattan, New York, is now back on sale for US$5.9 million ($8.05 million) less than what its owners allegedly bought it for with funds related to Malaysia's 1Malaysia Development Berhad (1MDB) scandal.
This is according to an online article published last week by The Wall Street Journal (WSJ), whose sources say the nearly-6,000 sf apartment at Walker Tower on West 18th Street is returning to market for US$45 million despite being purchased for US$50.9 million three years ago.
Abu Dhabi businessman Khadem Al Qubaisi, who is said to have received close to US$470 million from 1MDB's scandal involving US$4.5 billion worth of misappropriated funds, has a controlling stake in the penthouse's owner, 212 West 18th Street LLC.
While 1MDB’s founder Malaysian Prime Minster Najib Razak has denied any wrongdoing and been cleared by the state’s attorney general, the US Justice Department last year sought to seize the penthouse – among other properties in New York and Los Angeles – as part of its fraud investigation into the fund.
In September this year, it was reported that a federal judge in Los Angeles had ruled in favour of a US government request to delay its attempt to seize the assets.
People familiar with the matter have told WSJ that as a result, 212 West 18th Street is free to sell the penthouse given the stay provision and the company’s status as a limited liability company.
At the same time, attorneys familiar with the matter have also speculated that proceeds from the sale, should it go through, are likely to be placed in a government escrow account pending the inquiry’s results and any ruling on the seizure request.
Shaun Osher, CEO of Cayre Osher Real Estate (CORE), the company listing the penthouse on sale, tells WSJ that the unit is now priced to move at its current US$45 million tag, as “one of the best [pedigree apartments] in the city”.
See: The Wolf of Wall Street producer settles US suit linked to 1MDB
See: Singapore seizes $50 mil private jet belonging to 1MDB mastermind Jho Low: report
See: US seizure of 1MDB assets moves on with Jho Low’s family sidelined
