Tsogo to transfer more properties to HPF

HOSPITALITY Property Fund
(HPF) has entered into
negotiations with Tsogo
Sun to acquire further
hotel assets of about
R3,3 billion.
An earlier deal between the
two companies saw Tsogo
Sun acquiring control of HPF
by vending a portfolio of
hotels into HPF in exchange
for shares, after a deal was
approved by the Competition
Tribunal. As a result, an
additional 16 hotels were
added to Tsogo’s portfolio,
including properties from
Radisson, Protea and aha.
HPF also bought a portfolio
of 10 hotels from Tsogo
Sun in exchange for shares.
Unable to comment further
on the deal, Marcel von
Aulock, ceo of Tsogo Sun,
told TNW: “Basically it's just
following through
on the strategy to bulk up
HPF and move Tsogo's hotel
assets into a Real Estate
Investment Trust,
as we have set out all along.”
Tsogo has not revealed
which properties will form
part of the new deal.
The transaction will be
funded by HPF through a
combination of debt and
equity.
HPF is also preparing to
undertake an underwritten
rights offer to raise
approximately R1,8bn.