Istithmar buys Knickerbocker.

As REW reported April 26, Istithmar Hotels has confirmed it will buy the former Knickerbocker Hotel at 6 Times Square from Sitt Asset Management. According to sources, the sale price is $300 million.

Built in the early 1900s and also known as 6 Times Square, the Knickerbocker was one of midtown's premier hotels and one of the tallest buildings on Times Square. It was converted into an office property in the 1950s.

Now Istithmar wants to turn it back into a hotel.

Muneef Tarmoom, chief executive officer, Istithmar PJSC, said, "Given Istithmar's focus on international gateway cities such as New York, the Istithmar team has worked tirelessly to identify this unique opportunity to acquire a property with the ability of conversion into a five star hotel. This acquisition represents a key step forward for Istithmar Hotels." David Jackson, chief investment officer, Istithmar PJSC, said: "The company's primary focus is growth and asset appreciation through a diverse portfolio in the hospitality and leisure sector.

"This reinstates our commitment to real estate acquisitions internationally in major global markets and our desire to invest in truly exceptional opportunities."

As the main tourist destination in Manhattan, Times Square has significantly benefited from the unprecedented strength of the current hotel market.

Richard Johnson, Istithmar's head of real estate, said the absence of high quality hotels in the Times Square area gives the firm a huge opportunity to develop the area.

Istithmar PJSC is an international investment house based in the United Arab Emirates focusing on private equity, real estate and other investments. Istithmar means investment in Arabic.