Purchase Of Copthorne Hotel Auckland
NZX & MEDIA RELEASE 30 JUNE 2008
Millennium & Copthorne New Zealand Completes Purchase Of Copthorne Hotel Auckland Harbourcity
Millennium & Copthorne Hotels New Zealand Limited (NZX: MCK) announced today that it has entered into and settled an agreement with AMP NZ Property Commercial Limited and Perpetual Trust Limited to purchase the interests of the vendors in the Copthorne Hotel Auckland Harbourcity. While precise details of the purchase including the final price are confidential, MCK Managing Director Mr. B K Chiu was pleased that the Company was able to complete the purchase. The Company is using its own cash and a new loan facility from the Company’s bankers to fund the purchase.
“Copthorne Hotel Auckland Harbourcity’s location is one of the best in Auckland. The area around the Viaduct Basin and the hotel has changed dramatically over the past decade and is now a focal point for entertainment and access to the Waitemata Harbour. We are therefore pleased that we have been able to acquire both the freehold and leasehold interests for the hotel”, he said.
AMP NZ Property Commercial Limited also welcomed settlement of the transaction. The proceeds of the sale will be used to retire debt following the recent purchase of retail assets in Auckland.
Earlier this year, Millennium & Copthorne Hotels New Zealand installed sound proof windows to all 187 rooms in the hotel, reducing outside noise levels by up to 80%, and a soft refurbishment of the Tactics Restaurant and Bar areas and the conference rooms has also been completed. All rooms also now have high speed broadband access points. Mr. Chiu indicated that the Company would look at how the Company could best use the Hotel and the freehold site over the coming years.
“Copthorne Hotel Auckland Harbourcity is a key property for us and now that we are the freehold owners, we will be looking at what we can do at the Hotel and on the freehold site generally. As long term investors, there are a number of options open to us,” he said.
Mr. Chiu said that the decision to purchase Copthorne Hotel Auckland Harbourcity confirmed the Company’s ongoing commitment to New Zealand and to the key Auckland market. Millennium & Copthorne Hotels and Resorts now has three owned / leased properties in Auckland (Copthorne Hotel Auckland Harbourcity, Copthorne Hotel Auckland Anzac Avenue, Kingsgate Hotel Parnell) and recently entered into a short-term management agreement for the Metropolis Hotel Auckland.
“As New Zealand’s key gateway city, Auckland is one of New Zealand’s most important markets. Copthorne Hotel Auckland Harbourcity has played and will continue to play a very important role in our global network. Today's announcement gives us and our valued guests certainty that Millennium & Copthorne Hotels and Resorts is in the City of Sails for the long term and we look forward to continuing to welcome our corporate and leisure guests from within New Zealand and around the world to our Auckland hotels”, Mr. Chiu said.