KUALA LUMPUR (Dec 21): Kuching-based Advance Synergy Bhd is buying Beaver Hotel in London, UK, for £10.25 million (RM55.63 million), which it expects will be able to provide it a steady revenue income.
In a stock exchange filing this evening, Advance Synergy said the acquisition is also in line with its intention to have a greater presence in Europe and to further enhance its hospitality operations in major cities around the world.
The acquisition is being undertaken via Philbeach Gardens Ltd (PGL), a wholly-owned unit of Advance Synergy's 65%-owned Posthotel Arosa AG. PGL inked a share sale agreement today with the existing shareholders of Beaver Hotels Ltd, under which the hotel is parked. The shareholders are Jan Joseph Lis, Alexander Lis and Aurelian Jan Alexander Lis.
“The revenue from the hotel operations of Beaver will provide a steady income to Arosa and will in turn contribute to Advance Synergy's overall performance in the future,” Advance Synergy said.
The four-storey, 38-room hotel is located at Philbeach Gardens, Earl’s Court, London. It is near three tube stations (namely, Earl's Court, High Street Kensington and West Kensington) and many attractions in London, including the Royal Albert Hall in Kensington, Stamford Bridge Stadium and the popular Olympia London Exhibition Centre.
Advance Synergy said the proposed acquisition would be funded by Arosa's internal funds or/and PGL's borrowings.
Its shares slipped 0.5 sen or 4.35% to close at 11 sen today, giving it a market capitalisation of RM102.21 million.