New World sells three HK hotels to Abu Dhabi JV
New World Development announced it will transfer the full ownership of three Hong Kong hotels to a joint venture the HIP Group.
New World Development announced it will transfer the full ownership of three Hong Kong hotels –the Grand Hyatt Hotel Hong Kong, Renaissance Harbor View Hotel and the Hyatt Regency Hotel Hong Kong – to a joint venture with a subsidiary of Abu Dhabi Investment Authority, the HIP Group.
New World will gain RMB15.5 billion from the RMB18.5 billion deal (before tax and shareholders’ dividends). The three hotels with a total market value of RMB21.3 billion as of March 2015 will be recorded on the books of the joint venture and future earnings will be distributed among shareholders accordingly.
A spokesman of New World’s board of directors said the transaction would realize the hotel assets’ values for New World’s shareholders, and the joint venture will form an effective platform for HIP and New World to pursue other value-enhancing investments.
The proceeds from this transaction will be used for its development projects and working capital as well as to expand its inventory of land.(Translation by David)