said March30 that it agreed to sell the Aloft Kuala Lumpur Sentral Hotel in Kuala Lumpur toProsper Group Holdings Ltd.
The grosstransaction value is about 418.7 million Malaysian ringgit, which includes the purchaseof the entire issued share capital of the two Aloft companies and assumption ofcertain debts, assets and liabilities of the Aloft companies.
Aseanawill record a gain of approximately US$35.9 million, at current exchange rates,when the sale is complete. It will use sale proceeds to fully repay the medium-termnotes issued for the hotel, and to partly repay medium-term notes issued for theHarbour Mall Sandakan and Four Points Sheraton Sandakan Hotel.
The transactionreflects Aseana's divestment investment policy, under which the company is seekingto realize its assets. Shareholders approved the plan in June 2015, and it is expectedto last up to three years.
Aseanadeveloped the 482-room Aloft Kuala Lumpur Sentral Hotel, and the asset was 79% occupiedin 2015.
The saleis expected to close in the third quarter. It is subject to satisfactory completionof a due diligence review by Prosper Group, and certain consents from Starwood AsiaPacific Hotels & Resorts Pte. Ltd., the hotel's operator, as well as consentfrom Aseana's financiers for the hotel.
As of March 29, US$1 was equivalentto 3.996 Malaysian ringgit.