InterContinental sold cheap to Chinese-owned company
The InterContinental Hotel in Wellington has been sold for $10 million less than it was purchased for in 2006.
Wellington’s five star InterContinental Hotel has been sold at a discount to New Zealand-based Chinese investment company, Colwall, for $50 million.
Jones Lang LaSalle executive vice president Dean Humphries said it was the highest price achieved for any commercial property in the country this year to date.
But it was $11 million less than what the vendor, Eureka Funds Management paid for it in 2006. Eureka’s only other asset in New Zealand is the Christchurch Crowne Plaza that it bought in 2008, also for $60 million. The Crowne Plaza is within the earthquake red zone and destined for demolition.
Meanwhile, the InterContinental Hotel sale process attracted 50 initial inquiries, according to Mr Humphries
“This level of enquiry underpins the continued investor confidence in the New Zealand hotel market that we witnessed over the past 12 months,” Mr Humphries said.
“Despite a high level of offshore interest, the hotel was purchased a locally registered company, Colwall, that is owned by a Chinese company, who identified it as a strategic core asset for their portfolio,” he said.
According to the 2010 financial statements, Colwall had more than $43 million in property investments and more than $10 million in land, according to valuations carried out by Jones Lang LaSalle. The company is owned by Perfect Match of Hong Kong.
Jones Lang LaSalle Hotels also recently brokered the sale of the Hyatt Regency Auckland and Hotel SO Christchurch late last year, both part of as part of the South Canterbury Finance wind up. Jones Lang LaSalle is currently marketing the Hilton Hotel in Auckland and The Sherwood Hotel Queenstown.
Chris Hutching
Tue, 20 Sep 2011
Tue, 20 Sep 2011
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InterContinental sold cheap to Chinese-owned company
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