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The Philippine government has obtained bids topping $400 million for four Manhattan buildings that deposed leader Ferdinand E. Marcos had owned, even though the courts have yet to decide who should get the money from any sale of the properties.
Real estate industry executives described the so-called auction conducted by the Philippine government as bizarre, since the bidders were not assured of when or if they could ever take possession of the properties.
The Philippine government, brothers Joseph and Ralph Bernstein, and representatives of Saudi businessman and arms dealer Adnan M. Khashoggi claim ownership of at least some of the buildings, which include the former Korvettes and the troubled indoor shopping mall now called Herald Center at West 34th Street, and the Crown Building at Fifth Avenue and 57th Street.
Despite that, the auction drew a range of major real estate developers and investors, which sources said included developer Harry Macklowe; a group comprised of developer Bruce Ratner and The Related Companies, a major developer whose projects include the proposed Riverwalk complex on the East River; and Boston-based First Winthrop, whose holdings include the Gulf & Western building at Columbus Circle.
Another group, controlled by Morris Bailey, whose holdings include the Grand Bay and Halloran House hotels in Manhattan and Bush Terminal in Brooklyn, was told by representatives of the Philippine government that it was the winning bidder, Bailey said yesterday in an interview.
"It's certainly a very unusual transaction," said Bailey, who would not disclose his bid....