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.

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