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3 months ago
BRIEF-Hospitality Property Fund acquires 29 hotels from Tsogo Sun for 3.6 bln rand
May 18, 2017 / 9:54 AM / 3 months ago

BRIEF-Hospitality Property Fund acquires 29 hotels from Tsogo Sun for 3.6 bln rand

May 18 (Reuters) - Hospitality Property Fund Ltd

* Entered into agreements with Cullinan Hotel Proprietary, Merway Fifth Investments and Southern Sun Hotels

* Agreement for acquisition of portfolio of 29 hotel properties and each of hotel letting businesses conducted in respect of such properties

* Deal for an aggregate purchase consideration of R3.6 billion

* Hospitality's greater scale is expected to reduce its cost of funding whilst providing co with access to capital for future opportunities

* Purchase consideration will be discharged by hospitality via cash payment to ssh of R1.03 billion on effective date

* Purchase consideration will also be discharged via the issue to ssh by hospitality of 174mln hospitality ordinary shares Source text for Eikon: Further company coverage:

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