Aseana Properties Limited announces that it has agreed to dispose of the Aloft Kuala Lumpur Sentral Hotel to Prosper Group Holdings Limited. The gross transaction value is approximately RM418.7 million (approx. US$104.6 million), which includes the purchase of the entire issued share capital of ASPL M3B Limited and Iringan Flora Sdn Bhd (the “Aloft Companies”), and assumption of certain debts, assets and liabilities of the Aloft Companies. The transaction, which is expected to complete in Q3 2016, is conditional upon satisfactory completion of a due diligence review by Prosper Group, and certain consents being obtained from Starwood Asia Pacific Hotels & Resorts Pte Ltd, the operator of the Aloft Hotel, and consent from the Company’s financiers for the Aloft Hotel.
The Aloft Hotel is a 482-room hotel located in the heart of Kuala Lumpur Sentral, Kuala Lumpur’s urban transportation hub. Developed by Aseana, the Aloft Hotel has achieved commendable operating performance since opening in March 2013. The Aloft Hotel achieved an occupancy rate of 79% in 2015.
This disposal of one of the key investments in the Company’s portfolio represents a significant milestone in the divestment investment policy approved by Shareholders on 22 June 2015, pursuant to which the Company is seeking to realise the Company’s assets in a controlled, orderly and timely manner.
At current exchange rates, Aseana will record a gain of approximately US$35.9 million on completion of the Disposal. This represents a premium of approximately US$37.7 million to the latest Project NAV of minus US$1.8 million, and a discount of approximately US$1.0 million to the Project RNAV of US$36.9 million, based on figures published in the Aseana Tracker dated 24 February 2016. The proceeds from the Disposal will be used to fully repay the Medium Term Notes (“MTNs”) issued for the Aloft Hotel, and to partly repay the MTNs issued for the Harbour Mall Sandakan and Four Points Sheraton Sandakan Hotel. Upon repayment, the Company’s net gearing will be reduced from 1.12 times to 0.48 times, based on unaudited accounts as at 30/09/2015.
Aseana Properties continues to liaise with its lenders in respect of the first intended capital distribution of US$10.0 million and following completion of the disposal, the manager and the company will engage further with the lenders to seek consents for this capital distribution. Consideration will then be given to make further capital distributions depending on the availability of surplus cash within the Company and the receipt of consents from the lenders. A further announcement will be made when there is further clarity on the progress and timeline of obtaining these consents.
Dato’ Mohammed Azlan Hashim, Chairman of Aseana, said: “The disposal of the Aloft Hotel is a significant milestone in our divestment strategy. This transaction also highlights the strength of our Company in developing highly sought after real estate investment assets. The Company remains fully committed to returning capital to Shareholders and will work closely with its lenders to enable distributions to be made at the earliest possible opportunity.”
ASPL : Aseana sells Aloft Kuala Lumpur