Welcome to global politics in the Trump era:
The Intercept reports the country of Qatar is being physically blockaded by Saudi Arabia, Egypt, Bahrain and the United Arab Emirates and is accused of financing terrorism, with Jared Kushner pushing internally for a hardline against the country. Yet over the past year he and his firm have been secretly lobbying a financier there for a half-billion loan to bail out their flagging flagship property, 666 Fifth Avenue.
JARED KUSHNER TRIED AND FAILED TO GET A HALF-BILLION DOLLAR BAILOUT FROM QATAR
Not long before a major crisis ripped through the Middle East, pitting the United States and a bloc of Gulf countries against Qatar, Jared Kushner’s real estate company had unsuccessfully sought a critical half-billion investment from one of the richest and most influential men in the tiny nation, according to three well-placed sources with knowledge of the near transaction.
Kushner is a senior adviser to President Trump, and also his son in law, and also the scion of a New York real estate empire that faces an extreme risk from an investment made by Kushner in the building at 666 Fifth Avenue where the family is now severely underwater.
Qatar is facing an ongoing blockade led by Saudi Arabia and the United Arab Emirates, which President Trump has taken credit for sparking. Kushner, meanwhile, has reportedly played a key behind-the-scenes role in hardening the U.S. posture toward the embattled nation.
That hardline comes in the wake of the previously unreported half-billion deal that was never consummated. Throughout 2015 and 2016, Jared Kushner and his father, Charles, negotiated directly with a major investor in Qatar, Sheikh Hamad bin Jassim al-Thani, known as HBJ for short, in an effort to refinance the property on Fifth Avenue, the sources said.
Trump himself has unsuccessfully sought financing in recent years from the Qataris, but it is difficult to overstate just how important to Kushner the investment at 666 Fifth Avenue is for him, his company, and his family’s legacy in real estate. Without some outside intervention or unforeseen turnaround in the market, the investment could become an embarrassing half billion dollar loss. It’s unclear precisely how much peril such a loss would put Jared, or his family’s, finances in, given the opacity of their private holdings.
HBJ, a former prime minister of Qatar who ran the country’s $250 billion sovereign wealth fund, is a billionaire and one of the world’s richest men. He owns a yacht worth $300 million called Al Mirqab, the same name he gave to the private investment firm that Kushner pitched. The former emir of Qatar summed up HBJ’s power with a quip: “I may run this country, but he owns it.”
HBJ ultimately agreed to invest at least $500 million through Al Mirqab, on the condition that the Kushner Companies could raise the rest of a multi-billion refinancing elsewhere. The negotiations continued long after the election, carried out as recently as this spring by Charles Kushner. “HBJ basically told them, we’re good for 500, subject to a lot of things, but mainly subject to you being able to raise the rest,” said one source in the region with knowledge of the deal. The talks were confirmed by two additional sources with knowledge of the talks. One of those sources claimed that the potential deal was not contingent on the rest of the money being raised and that the HBJ investment was on hold as the overall structure of the financing was reconsidered. None of the sources would agree to talk on the record about a private financial transaction that has until now remained a secret.
After the election, Kushner Companies found many more suitors interested in doing business, one of the sources, who is U.S.-based, said. One of the investors taking the deal more seriously in the end of 2016 and early 2017, the U.S. source said, was “Hamid bin what’s-his-name,” referring to HBJ. Top executives at Kushner Companies, the source said, “are dumb enough to not know that why they want to deal with them has nothing to do with the real estate. Around the New Year they were like, ‘LPs” — industry slang for limited partners, or investors — “are engaging more!’ It’s like, I wonder why?”
from The Intercept By Ben Walsh, Ryan Grim and Clayton Swisher