Alain Debare, Action Hotels CEO said: “We are pleased to have completed the sale of the investment land in Sharq for $14.6 million. This transaction is a good example of Action Hotels’ ability to best utilise its assets to support its overall growth strategy.”
Action Hotels plc LON:AHCG, the leading owner, developer and asset manager of branded three and four-star hotels in the Middle East and Australia, is pleased to announce the completion of the profitable sale of the Company’s undeveloped investment land at Sharq, Kuwait (the “Sharq Site”).
The Company has agreed the sale of the Sharq site to Action Real Estate Company for a cash consideration of approximately $14.6m, which it has received (the “Sharq Site Disposal”), representing the crystallisation of a total profit on the sale of approximately $2.2 million based on the original purchase price in June 2014 of $12.4 million. The land was last valued on 31st December 2015 by Hamptons International at approximately $13.6 million (a valuation that was re-confirmed on a fair value basis by Hamptons on 20th October 2016). The proceeds will be reinvested and will help to fund the Company’s growing pipeline of hotels in the Middle East and Australia including the recently announced development in Melbourne.
By reason of H.E. Sheikh Mubarak A. M. Al Sabah being a director of, and shareholder in Action Hotels, as well as being a director of, and shareholder in Action Real Estate Company, the participation by Action Hotels in the Sharq Site Disposal constitutes a related party transaction under AIM Rule 13 of the AIM Rules for Companies. The independent directors of the Company, having consulted with the Company’s nominated adviser, Zeus Capital Limited, consider that the terms of the Sharq Site Disposal are fair and reasonable insofar as its shareholders are concerned.
