UOL Group on Friday said its wholly owned Australian subsidiary, Success Venture Pty Limited (SVPL) has entered into a deal to buy Hilton Melbourne South Wharf for A$230 million (about S$246.1 million).
SVPL, as a trustee for UOL's wholly owned unit trust, Success Venture (Melbourne) Unit Trust, had on Friday gone into an agreement with HHR Conventions Pty Ltd for this acquisition.
The purchase is subject to usual post-completion adjustments, UOL said in a filing to the local bourse.
An initial deposit of A$17.25 million or 7.5 per cent of the purchase price was paid upon execution of the agreement.
The remaining amount would be paid on completion of the said acquisition.
The purchase would be financed by bank borrowings and internal resources, UOL said, adding that following completion of the purchase, scheduled on or about May 31, 2017, the property would be rebranded as "Pan Pacific".
"The acquisition is part of the group's plans to expand its hotel property portfolio and hotel management businesses in the Oceania region. The property will allow the group to have a bigger presence in the city of Melbourne in addition to its PARKROYAL Melbourne Airport. Further to the above, the acquisition may also allow the group the opportunity to enhance the collective operating efficiency of the group's current hotels in Australia, through economies of scale and greater brand awareness of 'Pan Pacific' and PARKROYAL," the group said.