Investment company Ocean Capital has bought the Hides Hotel in Cairns for $7.5 million.
The Hides Hotel is a 105 room heritage listed building situated in the heart of Cairns.
The hotel has been operated by Ocean Capital under a leasehold agreement for the past 10 years.
The term of the lease is due to expire at the end of May 2006.
The purchase price is to be settled by way of the issue of 16 million ordinary shares in Ocean Capital, with an issue price of 42c each totalling $6.72 million and $780,000 in cash.
The property has been acquired on an attractive yield of approximately 10% per annum on an owner operated basis.
The vendor of the property is a company owned by family interests of David Kingston, the chairman and 59% shareholder of Ocean Capital.
Due to the related party nature of the transaction, shareholder approval will be required to complete the acquisition and an independent expert has been engaged to provide an independent report for the transaction.
Ocean Capital is an investment company with two divisions – Ocean Hotels and Sunlover Cruises.
Currently, Ocean Hotels has a tourism resort at Airlie Beach, an island resort in the Whitsunday’s.
By Kathryn O’Meara
