Esplanade back on market as Singapore deal lapses
Businesswoman Marylyn New is putting the Esplanade Hotel in Fremantle back on the market after the collapse of a $90 million sale to a Singaporean group.
Ms New's Camellia Holdings, the owner and operator of the landmark establishment, described the failed sale as "disappointing" but said it was now free to test other expressions of interest.
Camellia struck a deal with Singapore-listed property group Ascendas about three months ago.
However, Camellia said yesterday the agreement had lapsed, with the company unable to finalise the last of several unidentified "issues" in time for the launch of Ascendas' $634 million hotel float.
The prospectus for the float, which includes 11 properties in Australia, China, Japan and South Korea, was filed in Singapore on Monday without the Esplanade.
Esplanade back on market as Singapore deal lapses
"We just couldn't make the cut," Camellia director and Gilbert + Tobin partner Michael Blakiston said last night. "It was a matter of timing, there was no issue with the financials," he said.
In fact, the Esplanade had continued to trade above budget during the sales process, driven by strong demand for its accommodation.
"Ascendas were excellent throughout the whole process, very professional and transparent," Mr Blakiston said. "We would have liked to have gotten the deal done."
Ms New, who was valued in _The West Australian _'s Rich List last year at $220 million, said in the company's statement that while she was "disappointed that this transaction has not concluded, the business has remained strong".
She has owned the Esplanade since 1991, buying the property for an estimated $12 million and later doubling its capacity to 300 rooms.
Along with the 101-room Esplanade River Suites in Como, it was put on the market via Jones Lang LaSalle in late 2010. Ms New later explained she wanted to "move on" into new business ventures.
The Ascendas Hospitality Trust float will be the biggest in Singapore so far this year.
The $S922.9 million ($634 million) float includes hotels in Sydney, Melbourne, Brisbane and Cairns, with Ascendas having bought into a Mirvac-managed hotel fund in partnership with giant French hotelier Accor in December.
The group had hoped to raise at least $S1 billion in May or June as part of a diversification strategy but it was forced by tough market conditions to cut and delay the offering. Ascendas, with $S12.9 billion of assets, operates Singapore's biggest industrial real estate trust.
Source: The West Australian, 12 July 2012
