Hong Kong-listed Guoco Group, controlled by Malaysian businessman Quek Leng Chan, says indirect subsidiary BIL International has sold six hotels in Britain for GBP185 million ($2.7 billion).
In a statement issued to Bursa Malaysia Securities, Guoco's 58 per cent owned Camerlin Group said its associate expected the sale to contribute a net profit of US$89 million to BIL's books for the financial year.
Through Camerlin's 22 per cent stake in BIL, analysts estimated Guoco will bank a profit of US$11.35 million from the sale.
In response to the announcement, shares at Guoco rose 0.97 per cent to $77.75 yesterday.
According to the announcement, BIL, via its wholly owned subsidiary Thistle Hotels, sold its Hyde Park, Euston, Barbican, Bloomsbury Park and Piccadilly hotels in London and one in Edinburgh. These hotels have been leased back by Thistle for 30 years. A spokeswoman at Guoco said BIL would continue to operate and manage the six hotels for the next three decades.
BIL chief executive Arun Amarsi said the sale proceeds would be used for debt reduction and new investment.