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Plato Capital expects A$13.14m from sale of Melbourne hotel property

A 50 per cent-owned subsidiary of Plato Capital has agreed to sell a hotel property in Melbourne, Australia for A$52 million (S$52.351 million), the investment company announced on Wednesday after the market closed.

Plato subsidiary TP Real Estate Holdings, through two vehicles, will sell the property at 609 Swanston Street in Melbourne for A$51.7 million and the hotel business at the building for A$0.3 million. The hotel business is currently operated under the Tune brand.

The buyers of the property and hotel business were not disclosed. The deal is expected to be completed by March 4, 2016.

Plato currently carries its stake in the property and hotel business at a net book value of A$16.5444 million.

Sales proceeds will first be used to repay property-related loans of A$20.5 million, and for expenses and fees related to the transaction. Plato expects that its share of whatever is left over will be about A$13.14 million, which will represent a gain of A$6.845 for Plato.