Hospitality Property Fund acquires R400 million Sandton hotel

Posted On Friday, 25 July 2008 02:00 Published by eProp Commercial Property News
Rate this item
(0 votes)

Hospitality Property Fund will acquire the 301-key 4-star Holiday Inn Sandton, adjacent to the Village Walk Shopping Centre in Sandown, for R400 million

Gerald NelsonCurrently under construction, the 18 561m2 hotel is located on one of the prime hospitality sites in the country. The hotel is expected to be operational by September 2008 at which time Hospitality’s acquisition will be effective.

“The purchase of this new, high quality hotel is in line with Hospitality’s objective of growing its investment portfolio in a controlled manner through the addition of quality assets which will further diversify the portfolio and which have the potential to enhance unitholder returns,” notes Hospitality Property Fund CEO Gerald Nelson.

An independent valuation conducted by JHI Real Estate attributed a value of R470 million to the hotel. The consideration represents a 14,9% discount to the open market value and is likely to be settled through the company’s existing debt facilities.

The purchase is anticipated to be growth enhancing for Hospitality in the long term.

“The imminent completion of the refurbishment of a large component of our portfolio, together with this superbly located acquisition, position us well to deal with any sluggishness the sector may experience as a result of an economic slow-down.,” notes Hospitality COO Andrew Rogers.

Hospitality’s hotels and resorts include: Radisson Hotel Waterfront, Mount Grace Country House & Spa, Champagne Sports Resort, The Rosebank, Birchwood Executive Hotel and Conference Centre, five Courtyard Hotels, Protea Hotel Victoria Junction, and seven other Protea hotels.

The acquisition is subject to various conditions including the approval of the Competition Authorities of South Africa.

Hospitality Property Fund is a JSE Limited-listed property loan stock company, which invests in properties in the hotel and leisure industries. Hospitality is managed by Hospitality Property Fund Managers, a joint venture between property fund managers Grapnel Property Group and hotel specialists Hotel Tourism & Leisure Asset Management.

Valued at approximately R2,5 billion, Hospitality’s portfolio will comprise interests in 23 hotel and resort properties.

Last modified on Monday, 21 April 2014 13:42

Most Popular

University of Fort Hare construction resumes

Jun 18, 2020
Construction of UFH Student Housing
Following two months of hard lockdown, the development of a 2 047-bed student village at…

SA property prospects as we look beyond COVID-19 lockdowns

Jun 11, 2020
John Loos FNB Property Economist
“The COVID-19 Crisis has changed the world a lot, perhaps less through introducing new…

Estate Agency Affairs Board to re-open its doors this month

Jun 13, 2020
Mamodupi Mohlala
The Estate Agency Affairs Board (EAAB) will re-open its Sandton, Johannesburg offices…

Grit to improve liquidity, save costs through proposed JSE de-listing

Jun 11, 2020
Bronwyn Corbett Grit
London Stock Exchange listed Grit announced its intention to de-list from the JSE.

Redefine’s European logistics platform set to expand its footprint in Poland

Jun 17, 2020
Andrew Konig CEO Redefine
JSE listed diversified real estate investment trust Redefine Properties (JSE: RDF) along…

Please publish modules in offcanvas position.