Hiap Hoe Limited 5JK has announced its proposed acquisition of Great Eastern Motor Lodge in Rivervale, Western Australia for a purchase consideration of A$40 million ($35.87 million).
The company’s wholly-owned subsidiary Meteorite Land (Great Eastern) entered into a sale and purchase agreement with the S&C Christie Family Trust for the property on Dec 19.
The property sits on a 11,892 sqm freehold site and offers 198 bedrooms with 180 parking spaces situated around the site. It is located along the Great Eastern Highway, the main road linking the domestic and international terminals at Perth Airport to the Perth central business district.
Hiap Hoe says the property benefits from an array of transport connections and serves as focal points of the inner-city suburb of Rivervale, which is undergoing a comprehensive regeneration involving multiple residential, commercial and lifestyle venue developments.
In addition, the company says the proposed acquisition presents a prime investment opportunity with high occupancy levels that could increase recurrent income streams.
The consideration, of which A$4 million has already been paid, will be fully funded through a combination of internal resources and debt.
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Shares in Hiap Hoe 5JK closed unchanged at 66 cents on Dec 19.
