Far East Development plans to sell a 49.9% stake in the Melbourne Ritz-Carlton Hotel

SadMoneyMeow · 2026-04-02T02:52:06+00:00

Far East Development sells 49.9% equity interest in its wholly-owned subsidiary and sales loans, with a total price of AUD 58,183,400, expecting to realize a gain of AUD 18,344,000. The transaction aims to monetize hotel assets, improve liquidity, and reduce debt, aligning with the group's asset disposal strategy.

SadMoneyMeow

2026-04-02 02:52:06

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Far East Consortium Development (00035) announced that on April 1, 2026, the company’s wholly-owned subsidiaries FEC Hotel and FEC DCG intend to sell 49.9% of the issued shares of the operating company and 49.9% of the issued shares of the property holding company, as well as the assignment sale loans, to Ace Goal Investments Pte.Ltd., for a total consideration of AUD 58.1834 million. The Group is expected to generate a gain of approximately AUD 18.344 million from the transaction. Upon completion, the operating company and the property holding company will be owned by the buyer and the seller, respectively, with 49.9% and 50.1% interests.

It is understood that the target group includes the operating company, the property holding company, and the property company. The operating company is mainly engaged in hotel operations. The property holding company is mainly engaged in investment holding. The property company is mainly engaged in property investment. Pursuant to the sale and purchase agreement, the target group will carry out an internal reorganization, so that, immediately before completion, the legal and beneficial ownership of the hotel (the Melbourne Ritz-Carlton Hotel) will be held by the property company.

The directors consider that the transaction will (i) realize the value of the hotel; (ii) enable the proceeds from the transaction to be realized and reinvested in capital on a revolving basis; and (iii) increase the Group’s working capital and reduce its net asset gearing ratio. The directors believe that the transaction is consistent with the Group’s strategy of releasing development profits from its hotel portfolio and disposing of non-core assets.

(Editor: Zhang Xiaobo ）

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