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Hotel Grand Central sells Australian hotel for A$80 million

HOTEL Grand Central (HGC) on Tuesday said it has inked a deal to sell Hotel Grand Chancellor Surfers Paradise hotel in Australia for A$80 million (S$79.7 million).

The hotelier company had bought the 408-room hotel in 2010 for A$47 million. It subsequently spent an additional A$8.75 million, including stamp duty and renovation works, on the hotel.

The completion of the sale is conditional on the buyer obtaining Foreign Investment Review Board approval.

"The proposed sale transaction allows HGC to realise its investment in this hotel asset. The net sale proceeds after payment of related transaction costs such as sales commission and professional fees and taxes shall be placed into interest bearing bank term deposits pending a decision by the directors on future investment opportunities," it said.

The deal is expected to lend a boost to its net asset value and earnings per share.

The company's shares finished 1.5 cents or 1.3 per cent higher at S$1.20 on Tuesday.