Far East Consortium to Sell Hong Kong Hotel for HKD 450m.
M2 EQUITYBITES-March 6, 2017-Far East Consortium to Sell Hong Kong Hotel for HKD 450m
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6 March 2017 - Hong Kong-based property development and hotel management group Far East Consortium International Ltd.'s Dorsett Hospitality International Ltd subsidiary has agreed sell Hong Kong hotel Silka West Kowloon to Chinese property firm Golden Wheel Tiandi Holdings Co's (SEHK: 1232) Golden Wheel Jasper Co Ltd subsidiary for HKD 450m (USD 57.97m), the company said.
Upon completion, Far East Consortium is expected to record a gain from the Sale of approximately HKD 316m.
On completion, Dorsett Hospitality International Services will enter into a hotel management agreement with DAGL, to provide management services in relation to the management and operation of the hotel.
The agreement provides a good opportunity for Far East Consortium to realise the value created in the development of the hotel, whilst remaining as the manager to manage the Hotel under the brand "Silka" and to continue its expansion into the hotel management business, the group said.
Net proceeds from the Sale will be retained as capital for the group's business development and general corporate purposes.
Far East Consortium International is mainly engaged in property development and investment, hotel operation and management, as well as car park and facilities management.
The group adopts diversified regional strategy and the "Chinese Wallet" strategy with business covering Hong Kong, Mainland China, Australia, Malaysia, Singapore, the United Kingdom and New Zealand.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Mar 6, 2017|
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