30th Dec 2005 07:00
Mandarin Oriental International Ld30 December 2005 To: Business Editor For immediate release MANDARIN ORIENTAL TO SELL THE MARK, NEW YORK 30th December 2005 - Mandarin Oriental International Limited announced todaythat its wholly owned entity, Madison Avenue Hotel Partners Limited Partnership,had entered into an agreement to sell its 100% leasehold interest in The Mark,New York for a gross consideration of US$150 million. The agreement is with anentity jointly controlled by Izak Senbahar and Simon Elias. The hotel wasoriginally acquired in 2000 as part of the US$142.5 million acquisition of TheRafael Group. After transaction costs and tax, the post-tax gain arising on the disposal willbe approximately US$35 million. The consideration will be payable in cash, andcompletion is expected before the end of January 2006. The proceeds receivedwill be applied towards the Group's general corporate purposes, includingpursuing its development strategy. Under the Group's accounting policies, the earnings before interest, tax anddepreciation for The Mark, New York (including management fees) for the yearended 31st December 2004 were US$2.5 million. The net carrying value of theGroup's interest in the leasehold property as at 31st December 2004 was US$61million. Commenting on the sale, Group Chief Executive, Edouard Ettedgui said, "Themarket conditions surrounding the sale of this property are extremely positive,and the funds generated will be used to further the Group's growth strategy.Our brand will continue to be well represented in the city by Mandarin Oriental,New York, which opened to great acclaim at the end of 2003 on the south-westcorner of Central Park." Mandarin Oriental Hotel Group is the award-winning owner and operator of some ofthe world's most prestigious hotels and resorts, currently operating 23 luxuryhotels with a further seven under development in Prague and Riviera Maya, Mexico(2006), Boston and Grand Cayman (2007), Chicago (2008), Macau and Las Vegas(2009). In total, Mandarin Oriental now operates, or has under development,more than 8,000 rooms in 17 countries with 13 hotels in Asia, 12 in the Americasand five in Europe. Mandarin Oriental International Limited is a public listedcompany and a member of the Jardine Matheson Group. - end - For further information, please contact: Mandarin Oriental Hotel Group International LimitedStuart Dickie (852) 2895 9177 e-mail: [email protected] Jill Kluge 44 (20) 7766 3671Group Communications - Global e-mail: [email protected] Sally de Souza (852) 2895 9228Group Communications - Asia e-mail: [email protected] Danielle DeVoe 1 (212) 399 3938Group Communications - Americas e-mail: [email protected] Golin HarrisKennes Young (852) 2501 7987 This and other Group announcements can be accessed through the Internet at 'www.mandarinoriental.com'. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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