Merchant Court goes for $208 million

Merchant Court goes for $208 million 

 

KINGDOM Holding, the investment company controlled by Saudi billionaire Prince Alwaleed bin Talal, said its Fairmont Raffles Hotels International unit has sold The Swissotel Merchant Court in Singapore.

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Bloomberg said yesterday the 476-room hotel was sold for US$153 million ($208 million), citing an emailed statement from Kingdom, which did not name the buyer.

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“The sale of this hotel is in line with Kingdom’s strategy to continue to realise value from hotel assets either through a sale or aggressive operational and financial management across its hotel portfolio,” Mr P J Shoucair, the executive director for international investment, was quoted by Arab news agency MENAFN as saying.

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Fairmont Raffles, a joint venture between Kingdom and United States-based private equity firm Colony Capital, last week called off a deal to sell Singapore’s iconic Raffles Hotel to a consortium led by former Credit Suisse banker Mark Pawley.

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The consortium earlier planned to buy the grand old dame for a reported $650 million — more than triple the $200 million paid by its American and Middle Eastern owners in 2005. Fairmont Raffles would have continued running the property through a management contract if the sale had gone through.

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Both parties declined to provide reasons for the scrapped deal, citing confidentiality clauses. The consortium’s spokesman, however, denied that funding was the cause.

 

 

Source: Today Newspaper

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