Action Hotels PLC Sale of Sharq Investment Land (4392O)
November 07 2016 - 2:00AM
UK Regulatory
TIDMAHCG
RNS Number : 4392O
Action Hotels PLC
07 November 2016
This announcement contains inside information
Action Hotels plc
("Action Hotels" or the "Company")
Sale of Sharq Investment Land
Action Hotels plc, the leading owner, developer and asset
manager of branded three and four-star hotels in the Middle East
and Australia, is pleased to announce the completion of the
profitable sale of the Company's undeveloped investment land at
Sharq, Kuwait (the "Sharq Site").
The Company has agreed the sale of the Sharq site to Action Real
Estate Company for a cash consideration of approximately $14.6m,
which it has received (the "Sharq Site Disposal"), representing the
crystallisation of a total profit on the sale of approximately $2.2
million based on the original purchase price in June 2014 of $12.4
million. The land was last valued on 31(st) December 2015 by
Hamptons International at approximately $13.6 million (a valuation
that was re-confirmed on a fair value basis by Hamptons on 20(th)
October 2016). The proceeds will be reinvested and will help to
fund the Company's growing pipeline of hotels in the Middle East
and Australia including the recently announced development in
Melbourne.
By reason of H.E. Sheikh Mubarak A. M. Al Sabah being a director
of, and shareholder in Action Hotels, as well as being a director
of, and shareholder in Action Real Estate Company, the
participation by Action Hotels in the Sharq Site Disposal
constitutes a related party transaction under AIM Rule 13 of the
AIM Rules for Companies. The independent directors of the Company,
having consulted with the Company's nominated adviser, Zeus Capital
Limited, consider that the terms of the Sharq Site Disposal are
fair and reasonable insofar as its shareholders are concerned.
Alain Debare, Action Hotels CEO said:
"We are pleased to have completed the sale of the investment
land in Sharq for $14.6 million. This transaction is a good example
of Action Hotels' ability to best utilise its assets to support its
overall growth strategy."
ENDS
For more information, contact:
Action Hotels PLC Tel: +44 (0) 20
7907 9663
Alain Debare, Chief Executive
Officer
Katie Shelton, Director of
Corporate Affairs
Zeus Capital plc (NOMAD
& Broker)
Dan Bate / Jonathan Sharp Tel: +44 (0) 16
1831 1512
Adam Pollock Tel: +44 (0) 20 3829 5000
Camarco (Press enquiries) Tel: +44 (0) 20
3757 4994
Jennifer Renwick / Tom Huddart
Notes to Editors
Action Hotels PLC
Action Hotels is a leading owner, developer and asset manager of
branded three and four star hotels in the Middle East and
Australia. Established in 2005, Action Hotels currently has 11
completed hotels with 2,030 rooms in aggregate across the Middle
East and Australia, with further properties in development in both
regions.
More information is available at
http://www.actionhotels.com/
This information is provided by RNS
The company news service from the London Stock Exchange
END
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