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The Middle East Envoy appointed by Trump has previous connections to wealthy oil-producing countries in the region. Steve Witkoff’s dealings with two sovereign wealth funds while managing the purchase and sale of Park Lane Hotel in Manhattan raise concerns about potential conflicts of interest in his new position.
Written by Eric Lipton
Reporting from the nation
Steven Witkoff, a wealthy real estate executive from New York, who was appointed by President-elect Donald J. Trump as his special envoy to the Middle East, found himself in a difficult situation.
In 2018, a co-investor of Mr. Witkoff in a Manhattan hotel project faced fraud charges from the Justice Department, causing a delay in converting the hotel into luxury condos. However, there was a two-part rescue from real estate investors in New York who are often sought after for help in difficult situations.
Initially, the sovereign wealth fund of Abu Dhabi increased its ownership in the distressed Park Lane hotel, located near the southern part of Central Park. Following that, the Qatar Investment Authority made a significant investment of $623 million in a leveraged buyout of Mr. Witkoff and his associates.
The deals, which include two oil-rich sovereign wealth funds from the Middle East, show the large amount of money coming into U.S. real estate companies from entities linked to countries such as Qatar, the United Arab Emirates, Saudi Arabia, and Kuwait.
Mr. Witkoff will face challenges as he starts his new job, especially when dealing with leaders of countries that have previously lent money to or bought real estate projects from his family.
Mr. Witkoff has not provided any comments in response to requests, and it is unclear if he plans to resign from his position as chairman and co-chief executive of the Witkoff Group, a company he operates alongside his son, Alex Witkoff.
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