Boustead Strengthens Property Division
Via Acquisition of London Hotel
KUALA LUMPUR, July 24, 2014 – With a view to expanding its stable of properties beyond Malaysian shores, Boustead Holdings Berhad (BHB) today announced the proposed acquisition of Hyde Park Hotel situated in London, the United Kingdom. The total purchase consideration is RM138,975,000, equivalent to GBP25,500,000,which was reached on a willing-seller-willing-buyer basis.
BHB has entered into a sale and purchase agreement with Pastel Estate Limited (PEL) to acquire the property, which comprises the 68-room hotel as well as freehold titles. Strategically located in the Bayswater area of London, the property has good accessibility to major shopping and tourist attractions as well as public transportation and amenities.
YBhg Tan Sri Dato’ Seri Lodin Wok Kamaruddin, Deputy Chairman/Group Managing Director, Boustead Holdings Berhad, said, “This is a strategic acquisition, with a view towards strengthening our property portfolio of investments. Coupled with this, it also provides our hospitality business with an opportunity to branch out beyond Malaysian shores.”
“Given its prime location in Central London, the Hyde Park Hotel represents a viable opportunity for the Group to capitalise on the growing hotel market and hospitality industry in London. Over the years, we have grown our portfolio of properties locally and today we have an exceptionally strong stable of investments with our Royale Bintang and Royale Chulan chain of hotels. We are pleased with the significant synergies that this acquisition will bring to the Group for our property investments and hotel business,” added YBhg Tan Sri Dato’ Seri Lodin.
The Hyde Park Hotel is currently leased to an operator and will be purchased with the lease.
Since its inception as a modest trading entity more than 180 years ago, the Boustead Group has grown by leaps and bounds to comprise more than 90 subsidiaries, associate companies and joint ventures, and has substantial interests in various sectors of the Malaysian economy. The Boustead Group's operations are focused in six key areas; plantation, heavy industries, property, finance & investment, trading & industrial and pharmaceutical. As at 31 March 2014, Boustead Holdings Berhad’s paid-up capital was RM517 million while its shareholders’ funds stood at RM5.2 billion. Market capitalisation is currently in excess of RM5.6 billion.
Forward looking statements
This release may contain certain forward-looking statements with respect to the financial conditions, results of operations and business of the Group and certain plans and objectives of Boustead Holdings Berhad with respect to these items. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
on behalf of: Boustead Holdings Berhad
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