7th Nov 2016 08:13
LONDON (Alliance News) - Action Hotels PLC on Monday said it has sold undeveloped investment land in Kuwait for a cash consideration of around USD14.6 million.
The Middle East and Australia-focused hotel owner and manager said it was selling the site in Sharq to Action Real Estate Co, with a total profit on the sale of around USD2.2 million based on the original purchase price in June 2014 of USD12.4 million. The land was last valued on December 31 at around USD13.6 million.
Action Hotels said the proceeds of the sale will be reinvested and will help to fund its growing pipeline of hotels in the Middle East and Australia, including a recently announced development in Melbourne.
Action Hotels Founder and Non-Executive Chairman Sheikh Mubarak Al Abdullah Al-Mubarak Al-Sabah is also the founder of Action Real Estate Co, in light of which the disposal constitutes a related party transaction under AIM rules.
However, Action Hotels independent directors consulted with the group's nominated advisor and consider the terms of the disposal "fair and reasonable insofar as its shareholders are concerned", Action Hotels said.
"We are pleased to have completed the sale of the investment land in Sharq for USD14.6 million. This transaction is a good example of Action Hotels' ability to best utilise its assets to support its overall growth strategy," said Action Hotels Chief Executive Alain Debrare.
Shares in Action Hotels were down 1.9% at 53.00 pence on Monday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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