Colony Capital, LLC and Raffles Holdings
Limited have been awarded the prestigious ‘Deal of the Year’ award at the
recent 16th annual Hotel Investment Conference Asia Pacific (HICAP) in Hong Kong.
The transaction between Colony Capital, LLC and Raffles Holdings Limited to
purchase the latter’s entire hotel business for an enterprise value of S$1.72 billion was
closed last month and included the acquisition of all 41 hotels of Raffles Holdings (14
owned and 27 managed).
Organised by hotel, tourism and leisure consulting firm, Horwath Asia Pacific
together with Sonnenblick-Goldman Company and Burba Hotel Network, HICAP is
an annual event that sees the gathering of Asia’s top hotel industry leaders, investors
Colony Capital, LLC, is a leading international investment fund with more than 15 years
experience investing in global hospitality assets while Raffles Holdings is a
Singapore-listed company that has a 45% direct equity interest in Tincel Properties (Private)
Limited, which owns Raffles City Complex, a multi-use development located
in Singapore's prime business district which the company manages. From the deal, Raffles
Holdings received S$1.45 billion aggregate consideration in cash for its
equity interest. Based on the pro forma net tangible assets (“NTA”) of the Hotel Business as at 31
December 2004, the aggregate consideration implies a 64% premium to NTA and gross
proceeds of S$0.69 per Raffles Holdings share.
Present at the award ceremony were Mr Grant L. Kelley, CEO of Colony Capital Asia
Limited and Ms Leong Wai Leng , Deputy CEO of Raffles Holdings Limited. Mr Kelley
said, “We are ecstatic that our move to purchase Raffles Holding’s Hotel
Business has been recognised as the year’s most prominent hotel deal by the industry.
With its outstanding brand assets and a team of talented staff, Raffles International fits
well into our overall strategy of building a major world-class hospitality organization
that can serve increasingly sophisticated customer needs. With the successful
completion of the deal last month, we will now build on the existing strengths of
Raffles International and leverage on the resources, networks and products to ensure
the continued growth of the Raffles and Swissôtel brands over the years ahead.”
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