(Rewrites first sentence to show that adjournment occurred.Adds investor comment, background)
NEW YORK (Reuters) - A foreclosure auction ofStuyvesant Town/Peter Cooper Village, the massive Manhattanapartment complex that may be worth less than half what it wasjust three years ago, was adjourned Monday withoutexplanation, until Oct. 13.
CWCapital, which represents the bondholders owning the $3billion mortgage on the property, declined to give a reason whythe auction was delayed.
The auction was to occur at U.S. District Court inManhattan. However, a trustee opened and then adjourned theprocedure. Only CWCapital attorneys and a few news reporterswere present.
A meeting had been scheduled for Friday between CWCapitaland hedge fund Pershing Square Capital head William Ackman, whowants to buy the property. Other investors have also expressedinterest in the property.
Late last month, a state court rejected an attempt by Pershing Square and its partner Winthrop Realty Trustto stop the bondholders from auctioning the complex.
Ackman was not available for comment Monday afternoon.
"It is highly common for these kind of things to get kickedout in time," said Henry Owsley, chief executive officer ofGordian Group, an independent investment bank specializing incomplex and distressed financial advisory work.
A group of investors led by private equity firm TishmanSpeyer Properties in 2007 paid $5.4 billion for the 56-buildingcomplex on 80 acres on the east side of Manhattan. In Januarythe owners defaulted on their mortgage payments and most of theinvestors, including pension fund Calpers, lost theirinvestment.
But the decline of the U.S. real estate market and anadverse court ruling that said the apartments had beenillegally deregulated clobbered the new owners.
The complex is home to 25,000 well-organized tenants, manyof whom might become the ultimate owners of the apartmentsunder several plans to be submitted by investors.
The $3 billion mortgage was securitized into bonds andthose investors are represented by CWCapital. The bondholdersare owed $3.66 billion, which is the mortgage plus accruedinterest and fees. (Reporting by Ilaina Jonas, editing by Dave Zimmerman, editingby Gerald E. McCormick)