NORTH JERSEY – A consortium of five lenders that hold the secured debt on Xanadu has announced today that it has exercised its right to acquire control of the stalled retail/entertainment/sports complex on Route 3 in East Rutherford.
According to an Aug. 10 release, the consortium will now work to finally complete the stalled $2.3 billion project. With Xanadu effectively under new ownership, the project will be rebranded, according to the release, and it is widely believed that the very name “Xanadu” will be dropped.
The new ownership is also committed to revamping Xanadu’s widely hated exterior.
The consortium is “currently negotiating with several world-class entertainment and retail operators that have the financial resources as well as the leasing and development expertise necessary to successfully complete a project of this magnitude,” the release states. “As part of these negotiations, the new operator will be required to accelerate completion of the project, which will include refinishing the widely criticized exterior of the building and implementing a full rebranding campaign for the project.”
“The transfer of control of this complex to the [consortium] is consistent with [Gov. Chris Christie and Christie advisor Chair Jon Hanson’s] commitment to realizing the original promise of this project as a world-class facility and economic driver for Bergen County and the entire State,” stated Michael Beckerman, a spokesperson for the consortium. “This action creates a strong foundation to affect the seamless transfer of ownership in order to complete this project as quickly as possible so that it is open and flourishing as an established visitor destination in advance of the 2014 Super Bowl.”
Gov. Christie has pledged that any state funds committed to the project will be in exchange for an economic interest in the project.
The Lender Group is being advised by leading investment bank Moelis & Company, as well as Sills Cummis & Gross and Weil Gotshal & Manges, LLP.
If completed to its original scale, the complex is expected to generate 2,000 temporary jobs and 2,000 permanent jobs.
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