Zealand to Eureka Funds Management Ltd for £164 million in Cash
|Singapore, 1 September 2005 InterContinental Hotels Group
PLC ( IHG ) today announced it has sold nine hotels in Australia and New
Zealand to Eureka Funds Management Ltd ( Eureka ), for A$390 million (£164
million) in cash (before transaction costs), above the net book value of
A$315 million (£133 million).
IHG has also sold a further hotel, Holiday Inn Suva to FNPF Investment
Limited (FIL), the wholly-owned subsidiary of the Fiji National Provident
Fund ( FNPF ) for A$15 million (£6 million) in cash, bringing the
total sale price of the ten hotels to A$405 million (170 million).
The transactions are expected to complete in the fourth quarter of 2005. Proceeds will be used for general corporate purposes.
The ten hotels (2,310 rooms) were placed on the market in April 2005
as part of IHG s continuing asset disposal programme. They consist of InterContinental
Wellington in New Zealand, three Crowne Plaza hotels in Australia, five
Holiday Inn hotels in Australia and Holiday Inn Suva in Fiji.
Patrick Imbardelli, IHG Managing Director Asia Pacific commented: We are delighted to be establishing long term relationships with business partners of the calibre of Eureka and FNPF. They join a growing group of leading investors world wide, which have demonstrated their faith in InterContinental Hotels Group brands and expertise.
Bob Kelly, Managing Director of Eureka, which is a property fund manager that focuses exclusively on Australian pension funds, stated: The transaction reflects the increased acceptance of the hotel sector by its institutional investors.
Kumar Kalyanakumar, Director of Eureka added: This transaction cements what will be a strong relationship with InterContinental Hotels Group. The brand diversity, locational spread and strong business foundation which have been laid by the Group through its ownership and management over the years were the key attractions of the portfolio of hotels to Eureka.
Olota Rokovunisei, CEO of FNPF said that he sees the association with
IHG as a significant strategic partnership.
The sales announced today include 10 hotels and 2,310 rooms, namely:
InterContinental Hotels Group PLC
|Also See:||InterContinental Hotels Group Plans To Dispose of Ten Wholly Owned Properties in Australia, New Zealand and Fiji / April 2005|
|Patrick Imbardelli, InterContinental Hotel Groupís Managing Director for Asia Pacific, is ĎDivorcingí Owners Who Donít Fit In with the Groupís Values / Steve Shellum HOTEL Asia Pacific / November 2003|