Regal REIT Acquires the Iclub Ma Tau Wai Hotel in To Kwa Wan
P&R Holdings Limited, a 50-50 joint venture of Paliburg and Regal entered into a Sale and Purchase Agreement to acquire a 50% equity interest in Prosper Harvest, which indirectly owns the iclub Ma Tau Wai Hotel.
Century City International Holdings Limited (HKSE: 355), Paliburg Holdings Limited (HKSE: 617) and Regal Hotels International Holdings Limited (HKSE: 78) announcethe following transactions:
A Development Project in New York
Full Season International Limited, a wholly-owned subsidiary of Regal entered into a letter of intent (“LOI”) with an independent third party in relation to possible cooperation on a development project in New York on 23rd May 2017. The project involves the development of a retail and entertainment mall, and a tower with a hotel and residential condominiums, with a gross floor area of about 420,000 square feet. It is envisaged that Full Season will have a majority equity interest in the project. Pursuant to the LOI, Full Season is granted an exclusive negotiation right.
Iclub Ma Tau Wai Hotel
On the same day, P&R Holdings Limited, a 50-50 joint venture of Paliburg and Regal entered into a Sale and Purchase Agreement to acquire a 50% equity interest in Prosper Harvest, which indirectly owns the iclub Ma Tau Wai Hotel. Following the completion of the Acquisition, P&R Holdings’ equity interest in Prosper Harvest has increased from 50% to 100% and Prosper Harvest has become a wholly-owned subsidiary of P&R Holdings and a subsidiary of Century City and Paliburg.
Regal Real Estate Investment Trust (stock code: 1881) entered into a Letter of Intent with P&R Holdings on the same date, pursuant to which Regal REIT has proposed to acquire from P&R Holdings the entire issued share capital of and the shareholder loan to Prosper Harvest at a consideration of HK$1,360 million (subject to adjustment). It is expected that the sale and purchase agreement regarding this transaction shall be entered into on or before 30th June 2017.
The principal asset of Prosper Harvest is its 100% ownership interest, held through its wholly-owned subsidiaries, in the iclub Ma Tau Wai Hotel, located at Ha Heung Road in To Kwa Wan, Kowloon. The hotel has 22 storeys and 340 guestrooms, with approximately 6,298 square metres gross floor area.