Hong Kong-listed Australian casino investor Far East Consortium has announced the disposal of its 49.9 percent stake in The Ritz-Carlton, Melbourne, for AU$233.2 million ($161.5 million).
According to a Wednesday filing, the group is expected to record a gain of approximately AU$18.3 million ($12.67 million) from the transaction.
This is the second recent disposal of a Ritz-Carlton property by FEC in Australia, following a December announcement that it was selling its interest in Ritz-Carlton Perth to the AMTD Group for AU$100 million ($66 million).
The Melbourne hotel stake sale comes after FEC and Chow Tai Fook Enterprises (CTFE) jointly purchased The Star Entertainment Group’s 50 percent stake in Queen’s Wharf Brisbane.
The purchaser of the Melbourne hotel stake is identified as Singapore-based Ace Goal Investments, which is 45 percent owned by FEC Chairman and CEO David Chiu and 55 percent owned by FEC Executive Director Jennifer Wendy Chiu.
The agreement involves the sale of the 49.9 percent equity interest in the companies that own The Ritz-Carlton Melbourne and the assignment of 49.9 percent of the outstanding shareholders’ loan. The aggregate consideration for the sale is approximately AU$58.2 million ($40.3 million).
FEC CFO Boswell Cheung indicated that the Melbourne property disposal and another asset in Malaysia “are consistent with our strategy to monetize non‑core assets and strengthen the balance sheet”.
