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

From pandemic side hustle to multi-million dollar business: Meet Ling Fung
Partner Content
Ask any parent, and they’ll tell you: preparing for a new baby is no easy task.&n...
Metro Baby
Advertisement

Related Stories

ACCC gives Compare the Market operator green light for iSelect takeover

ACCC gives Compare the Market operator green light for iSelect takeover

The Australian Competition & Consumer Commission (ACCC) has ann...

Sales software group Bigtincan receives $442m takeover offer from SQN

Sales software group Bigtincan receives $442m takeover offer from SQN

Sales performance software company Bigtincan (ASX: BTH) has been on...

How Sourci made it: Meet the founders behind Australia’s new e-commerce wave

How Sourci made it: Meet the founders behind Australia’s new e-commerce wave

In just four short years the co-founders of product development con...

Competition watchdog sniffs at Cochlear-Oticon acquisition

Competition watchdog sniffs at Cochlear-Oticon acquisition

The management at Cochlear (ASX: COH) are hoping to add an extra 75...