Trump to take Sun-Times building

PROPERTY developer Donald Trump has agreed to pay $73m (£40m) for Hollinger International's stake in the 90-storey apartment and hotel block he plans to build on the site of the Chicago Sun-Times. Hollinger, which this week announced the sale of the Telegraph Group to the Barclay brothers, says it will make a pre-tax gain of about $37.5m on the sale.

'The sale of our interest in this project is an important step forward in ensuring we maximise value for all Hollinger International's shareholders,' said interim chairman and chief executive Gordon Paris.

Trump will pay $4m now and the rest when the deal is closed. That is expected to be when the Sun-Times moves to new premises in September.

He said nearly $500m of units had been sold in the 2.6m-square foot tower. It is due for completion in 2007, with 461 apartments, a 227-room hotel, a health club, two ballrooms, a conference centre and shops.

John Cruickshank, chief operating officer of Hollinger's Chicago newspaper group, said the deal was a good result for the Sun-Times and would allow the company to devote its full attention to newspaper publishing.

The original joint venture was the brainchild of Hollinger executive David Radler, who approached Trump three years ago.

But, as one insider said: 'A lot's changed since the deal was struck.'