The Hyatt Regency Auckland Hotel - the recipient of South Canterbury Finance's biggest individual loan and the subject of a Serious Fraud Office inquiry - has been sold for between $50m and $60m.The identity of the buyer, and the total debt carried by the
The Hyatt Regency Auckland Hotel - the recipient of South Canterbury Finance's biggest individual loan and the subject of a Serious Fraud Office inquiry - has been sold for between $50m and $60m.
The identity of the buyer, and the total debt carried by the hotel – in addition to the $42.3m South Canterbury loan secured by second mortgage, first mortgages were held by Westpac and ASB – remains a mystery.
Previous NBR reporting has disclosed that even with a sale at the higher price of $60m, losses of "tens of millions of dollars" are likely to be booked by South Canterbury receivers once first-ranking debt is paid off.
A statement released by selling agent Jones Lang LaSalle Hotels described the buyer as an "international investor with existing ties to New Zealand."
Dean Humphries, Jones Lang national director, said the buyer wished to remain anonymous at this stage but the sale did not require Overseas Investment Office approval.
Whether the hotel continues to bear the Hyatt brand is up in the air, as the purchase agreement included a provision to renegotiate existing leases.
"That's something that the buyer will ultimately decide. As with most hotel management contracts, these things get renegotiated when sales occur" Mr Humphries said.
Settlement date for the sale is in late January.
