Shareholders of Ocean Capital have approved the purchase of Hides Hotel at the Extraordinary General Meeting held yesterday.
Through its wholly owned subsidiary, OCE Hides as trustee for the Hides Hotel Trust will acquire the freehold property described as Lots 10 and 12 Corner of Shield and Lake Streets, 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.
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 Adam Parsons
