Malayan United Industries Bhd has been seeking to sell Corus Hotel Hyde Park, London for more than a year. Pic source from corushotels.com
Malayan United Industries (MUI) Bhd will be investing £20.38 million (RM109.9 million) to refurbish and renovate Corus Hotel Hyde Park, London.
The group, via its indirect unit Plaza On Hyde Park Ltd, has secured two term-loan facilities totalling £100 million (RM539.3 million).
In a filing with Bursa Malaysia, MUI said the first facility is to refinance its existing term-loan and amounts to about RM429.2 million, while RM109.9 million is to fund the upgrading of the four-star London property.
It is unclear why MUI is spending RM109.9 million to upgrade Corus Hotel Hyde Park when it plans to sell the property.
MUI has owned the 389-bedroom hotel since 1997, which it bought for £44 million. The hotel is set in a listed 200-year-old Georgian mansion near Lancaster Gate, central London.
It was reported in 2014 that MUI was looking to sell the hotel for £200 million (RM1.07 billion) but the group denied this.
There was news again on the hotel sale after the UK media saw a "for sale” sign over the property and this time MUI confirmed the report in a filing with Bursa Malaysia last May.
MUI said it is seeking to sell the hotel, which is in line with the group’s strategy to rationalise the business, pare down its overall bank borrowings, and unlock value for its shareholders.
The group said that its indirect wholly-owned unit Corus Hotels Ltd (CHL) had appointed N.M. Rothschild & Sons Ltd, an international investment bank, as its financial adviser on the sale.
Rothschild was appointed to assist CHL in exploring strategic options for the asset as well as to ensure that only credible international investors are shortlisted and considered.
The sale of Corus Hotel Hyde Park could result in a gain on disposal of more than RM800 million in MUI’s profit or loss statement, based on the hotel’s net book value of RM256.47 million as at June 30, 2018.
CHL owns and operates several hotels in the UK and two in Malaysia.
According to MUI's website, CHL's revenue was £27.7 million for the financial year ended 30 June 2017 (FY17) compared with the prorated revenue of £26.3 million for the previous 12-month period (£39.5 million for the 18-month FY16).
The pre-tax profit was £1.7 million for FY17.
CHL's flagship hotel is Corus Hotel Hyde Park which recorded a revenue of £11.9 million and higher average room occupancy of 75.8 per cent in FY17
WATCH THE VIDEO
No comments:
Post a Comment