Mirvac sells off hotel & resorts portfolio.
The Mirvac Group has just announced its entered into contracts with Accor Asia Pacific and Singapore-based Ascendas for the sale of its Mirvac Hotels & Resorts division for up to $327 million (upon the successful completion of the transacation).
Mirvac Hotels & Resorts’ brands include The Sebel, Citigate, Quay West, Quay Grand and Sea Temple.
The sale price to the consortium represents a 15% premium to the current carrying value of the assets, Mirvac said.
“The sale outcome is in line with Mirvac’s strategy and it is a transforming event for the Hotel’s business as it becomes part of a globaly recognised hospitality group,” Mirvac managing director Nick Collishaw said.
Collishaw said that in an environment where new opportunities are scarce, increasing the scale of the Mirvac portfolio “was going to be difficult to achieve.”
“In these circumstances, today’s sale at a premium to book value represents an excellent result,” he added.
Settlement of the transaction is expected to occur before 30 Jun 2012, subject to conditons, consents and approvals.
Mirvac’s 50% Travelodge investment, worth $123 million, is not included in the sale, with the group saying it’s continuing to “assess options”.
More information in Monday’s Travel Daily.