LOS ANGELES, Aug 14 (Reuters) - Two investment banks have postponed the repayment of a $625 million credit second-hand to obtaining grounds on the Las Vegas Strip at a memorial valuation of $35 million an acre, one of the borrowers said on Thursday. Payment of the allowance from Goldman Sachs Group (GS.N: , , , ) and Credit Suisse Group (CSGN.VX: , , , ) has been deferred until May 2009, according to Michelle Tsang, a spokeswoman for Israel-based Elad Group, holder of New York's Plaza Hotel. Officials at the investment banks have not responded to requests for comment.
Elad, in partnership with IDB Group USA Investments Inc, a shared dare of Israel's Discount Investment Corp and its subsidiary Property and Building, purchased the 35 acres on the Las Vegas Strip in 2007 for a record-high guerdon of $1.25 billion, or about $35 million an acre. The partners announced plans to exhibit a Plaza-branded "$5 billion multi-use ultra-luxury hotel, reclusive residence, retail and gaming complex." But a empty U.S. conciseness combined with a much tighter attribute make available has caused developers to reassess the insufficiency for more inn capability on the gambling corridor.
Elad has no plans to begin construction on the Las Vegas throw -- the old placement of the now-demolished New Frontier Resort & Casino -- before 2009, Tsang said.
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