Abacus sells Novotel Twin Waters for $88.5m

Abacus sells Novotel Twin Waters for $88.5m

Abacus Property Group (ASX: ABP) is on the cusp of winding down its hospitality fund altogether with the $88.5 million sale of Novotel Twin Waters on the Sunshine Coast, Queensland to Melbourne-based Shakespeare Property Group.

The sale represents the final divestment for Sydney-based ABP's Abacus Hospitality Fund (AHF), which also used to comprise the Cairns resorts Rydges Tradewinds and Rydges Esplanade as well as Chateau of the Park in Christchurch, New Zealand.

The latest transaction is estimated to increase the fund's security price to between $0.75 to $0.77 per security.

"The fund will be wound up and the net capital returned to AHF securityholders as soon as possible following completion of all legal obligations," Abacus said in an announcement to the ASX yesterday.

"Abacus will receive a return of funds of between $50 and $55 million from AHF which is anticipated to be finalised upon fund windup and will be utilised to reduce debt in the short term."

In addition, Abacus has sold an adjacent, separate parcel of land for $11 million, due for settlement in October 2019.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Woolies exec Paul Graham named new Australia Post CEO

Woolies exec Paul Graham named new Australia Post CEO

Woolworths (ASX: WOW) chief supply chain officer Paul Graham has ...

Booktopia strikes Zookal deal to boost education sales

Booktopia strikes Zookal deal to boost education sales

After hitting a new record for educational book sales as universi...

Vitamins brand VOOST acquired by Procter & Gamble

Vitamins brand VOOST acquired by Procter & Gamble

Australian maker of effervescent supplements VOOST has been acqui...

Quarantine-free travel to WA effective for all Australian states from 19 April

Quarantine-free travel to WA effective for all Australian states from 19 April

Western Australia will soon be able to welcome any interstate tr...