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| Type | Announcement |
| Subject | OTHERS |
| Description |
ADVANCE SYNERGY BERHAD ("ASB") OR ("COMPANY") PROPOSED ACQUISITION OF 100% EQUITY INTEREST IN BEAVER HOTELS LIMITED BY 57-59 PHILBEACH GARDENS LIMITED ("PGL"), A WHOLLY-OWNED SUBSIDIARY INCORPORATED IN UNITED KINGDOM OF POSTHOTEL AROSA AG ("Arosa"), A 65%-OWNED INDIRECT SUBSIDIARY COMPANY OF ASB HELD VIA HOLIDAY VILLA ASSETS SDN BHD ("HVA"), AN INDIRECT WHOLLY-OWNED SUBSIDIARY OF THE COMPANY HELD VIA ALANGKA-SUKA HOTELS & RESORTS SDN BHD, A WHOLLY-OWNED SUBSIDIARY OF ASB |
Further to our announcement on 21 December 2018 on PGL’s acquisition of the 100% equity interest (represented by 1,100 ordinary shares of £1.00 each) in Beaver Hotels Limited (“Beaver”) for a cash consideration of GBP10.25 million (equivalent to approximately RM55.63 million) (hereinafter referred to as “Proposed Acquisition”), we set out below the following additional information:-
1. The purchase consideration for the Proposed Acquisition is arrived at on a willing-buyer willing-seller basis after taking into consideration, amongst others, the assessment by management of 4 recent sale transactions in 2018 of properties comparable to the freehold hotel property known as Beaver Hotel located at 57-59 Philbeach Gardens, Earl’s Court, London, SW5 9ED owned by Beaver, as summarised below:-
|
Hotel property located at Queensberry Place, South Kensington |
Hotel property located at Norfolk Square, Paddington |
Hotel property located at Longridge Road, Earls Court |
Hotel property located at Pembridge Gardens, Notting Hill |
Beaver Hotel |
|
|
Price |
GBP27.0 million |
GBP13.70 million |
GBP9.26 million |
GBP7.0 million |
GBP10.25 million |
|
Rooms |
47 |
50 |
40 |
20 |
38 |
|
Gross Internal Area (sq. ft.) |
13,997 |
11,048 |
7,590 |
7,407 |
12,304 |
|
Price per Room |
GBP574,468 |
GBP274,000 |
GBP231,500 |
GBP350,000 |
GBP269,737 |
|
Capital Value per sq. ft. |
GBP1,929 |
GBP1,240 |
GBP1,220 |
GBP945 |
GBP833 |
2. The acquisition of Beaver represents an opportunity for Arosa to acquire a property in central London that is comparatively well-priced and offers significant asset improvement potential. The asset improvement measures contemplated by management for the Beaver Hotel include the renovation and remodelling of the existing period buildings and exploring the opportunity for extension of the building over the land that comprises the property, to enlarge overall built-up area and room inventory. Management is targeting EBITDA* yield of up to 6.2% p.a. once the asset improvement initiative is completed and the asset has stabilised. Once the planned asset improvement measures have been implemented, management expects the Beaver Hotel to provide steady income and uplift in capital value of the asset to Arosa which will in turn, contribute to ASB's overall performance in the future.
* earnings before interest, tax, depreciation and amortisation
3. Arosa, a 65%-owned subsidiary company of HVA (a 100%-owned indirect subsidiary of ASB), was formed on 12 February 1926 in Switzerland. The remaining 35% interest in Arosa is owned by Kibar Konsep Sdn Bhd (“Kibar”). The shareholders of Kibar are Mr Anton Syazi Dato’ Ahmad Sebi and Ms Aryati Sasya Dato’ Ahmad Sebi who are the Executive Deputy Chairman and Non-Independent Non-Executive Director respectively of ASB.
This announcement is dated 27 December 2018.
Announcement Info
| Company Name | ADVANCE SYNERGY BERHAD |
| Stock Name | ASB |
| Date Announced | 27 Dec 2018 |
| Category | General Announcement for PLC |
| Reference Number | GA1-27122018-00080 |