Hotel Property Investment (ASX: HPI) has announced the sale of four properties to Australian Venue Co. for AU$48.6 million, proceeding in two phases. This strategic move allows the immediate reinvestment of the sales proceeds into a capital investment program aimed at enhancing other assets within HPI's portfolio. This strategy is expected to yield an attractive initial return of 7.5%, enhancing the quality of HPI’s assets and strengthening its relationship with its major tenant, Australian Venue Co., now owned by PAG. The divestiture aligns with HPI’s ongoing strategy to optimize its portfolio, having sold eight assets since FY20 and acquired 22.
This reallocation of capital is geared towards venue improvements, including upgrades to food and beverage offerings and physical spaces across nine venues initially, with more investments planned following the settlement of the remaining two sales. These enhancements aim to solidify the venues' roles in their communities, improve rental cash flows, and extend lease tenures, thereby benefiting HPI’s securityholders by improving earnings and net tangible assets (NTA) while navigating challenging capital market conditions.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
