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Disposal of interest in investment land

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RNS Number : 1193E
Action Hotels PLC
16 October 2018
 

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
 

Action Hotels plc

Disposal of interest in investment land 
 

Action Hotels plc ("Action Hotels" or the "Group"), a leading owner, developer, and asset manager of branded three and four-star hotels in the Middle East and Australia is pleased to announce that the Group has entered into a conditional sale and purchase agreement ("SPA") with Apex Investments Limited (the "Acquirer") to dispose of its 100% interest in the 5,553.5 square metre plot of investment land located in Innovation Hub, within Dubai's Media City (the "Sale").

As announced on 28 September 2018 in the interim results for the Group, there was a downward fair value adjustment of the aforementioned plot of land of $3.8m following the commencement of an exercise to explore the sale of the investment land with a view to providing working capital to the Group.

The Acquirer has agreed to pay the Group an aggregate consideration of AED 38.5m ($10.5m), slightly below the net asset value of AED 39.9m ($10.9m). The SPA is conditional on receiving no objection certificates amongst other conditions and the long stop date for satisfaction or, where applicable, waiver of the SPA conditions is 1 January 2019. Action Hotels purchased the plot of land for $10.07m, in February 2016. The impact to Action Hotels, in addition to the downward fair value adjustment already captured in the interim results, are fees payable in relation to the Sale and loss on sale of asset totaling AED 2.2 ($0.6m).

Andrew Lindley, Chief Financial Officer and interim Chief Executive Officer commented:

 

"This conditional sale and purchase agreement will provide additional working capital to the Group to continue its development plans and pipeline of hotels in the Middle East. The Board of Action Hotels assessed holding the investment land against the long-term cash requirements of the Group and decided to exit the investment."

 

 

For more information, contact:

 

Action Hotels plc

Andrew Lindley, Chief Financial Officer

Katie Shelton, Director of Corporate Affairs

 

+44 (0)77 9977 0588

 

WH Ireland Limited (Nomad and Broker to Action Hotels)

Adrian Hadden

Jessica Cave

 

 

+44 (0)20 7220 1666

     

Notes to Editors

Action Hotels PLC

Action Hotels PLC is a leading owner, developer and asset manager of branded three- and four-star hotels in the Middle East and Australia. Established in 2005, Action Hotels currently has 14 completed hotels with 2,623 rooms in aggregate across the Middle East and Australia, with further properties in development in the Middle East.

More information is available at http://www.actionhotels.com/


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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