Singapore’s UOL Group recently announced that its wholly-owned Australian subsidiary, Success Venture Pty Limited (SVPL), has reached an agreement with Host Hotels & Resorts Conventions Pty Limited to acquire the 396-room Hilton Melbourne South Wharf for A$230 million (US$173 million).
The purchase will be financed by bank loans and internal resources, and is part of UOL Group’s plan to expand its hotel portfolio and management businesses in the Oceania region.
While the purchase is subject to usual post-completion adjustments, an initial deposit of A$17.25 million (or 7.5 per cent of the purchase price) was upon execution of the agreement.
Following the completion of purchase, scheduled on or around May 31, Hilton Melbourne South Wharf will be rebranded as a Pan Pacific hotel.
UOL said that the acquisition would allow for enhancement in operating efficiencies of their Australian hotels through economies of scale and greater awareness of the Pan Pacific and PARKROYAL brands. The 30,688-square-meter property is on a 99-year leasehold until 2108.