PAG acquires Grand Hyatt Seoul for $475mn Hana Financial is said to provide acquisition financing, while the site development is on focus
이 기사는 2019년 11월 25일 08:00 더벨 유료페이지에 표출된 기사입니다.Hong Kong-based private equity firm Pacific Alliance Group (PAG) is set to be the new owner of Grand Hyatt Seoul, the oldest hotel in South Korea.
PAG has signed a sales agreement with Hyatt Hotels Corporation to acquire Grand Hyatt Seoul at the end of October, industry sources said last Tuesday. It was about two months after the private equity firm was selected as the preferred bidder on a non-binding basis by the seller and Jones Lang LaSalle (JLL), the lead manager of the sale. The transaction value is about 560 billion won ($475 million), according to a source familiar with the deal.
PAG has worked with several investors for the last several months to win the deal. Local brokerage Meritz Securities provided financial advice to the private equity firm and performed due diligence on the target. Mastern Investment Management, a Seoul-based asset manager, also helped PAG from the beginning of the sale process.
But after the private equity firm was chosen as the preferred bidder in August, the competition heated up among investors, including domestic brokerages, hoping to participate in underwriting financing, with some offering competitively low interest rates and fees.
The fact that this transaction is different from usual property sales also played a role. The acquisition includes the hotel and nearby land for residential use. Following the sale, Hyatt would reportedly continue to manage the hotel under its Grand Hyatt brand, while PAG would be able to develop or sell land.
For acquisition financing, PAG is expected to use an investment vehicle managed by Seoul-based Inmark Asset Management, according to a source familiar with the deal, and Hana Financial Investment could play a leading role in the overall funding process, though the situation is fluid.
For land for residential developments, Mastern Investment Management and Meritz Securities have been rumored to partner with the private equity firm. Mastern Investment Management is a leading real estate asset manager in the country, specializing in value-add strategies. Meritz Securities is also one of the leading domestic financial firms in real estate project financing transactions.
PAG, however, could be more interested in selling land separately rather than devoting its resources to develop it, according to multiple sources from financial and construction industries.
The site is widely expected to be developed as luxury homes. A potential project to develop the site would likely draw great attention from local building companies, including both leading builders and mid-sized businesses which seek to promote their premium brand image.
(By reporter Kim Gyuoung-tae)
최신뉴스 in 전체기사
- 셀트리온 계열 비상장 3사 합병한다
- [코스닥 CB 프리즘]센코, 신사업 확장 키워드 'ESG·수소' 방점
- 세종텔레콤 "자연·인간에 이로운 '디지털 혁신'" 선포
- '천랩' 인수 CJ제일제당, '레드바이오' 항로 잡았다
- EV첨단소재, 대만 배터리 기업 '프롤로지움' 투자
- [건설사 인력배치 트렌드]롯데건설, 가파른 주택 증가세…디벨로퍼 강화 전략
- LG화학 아픈 손가락 '우지막코리아', 기사회생할까
- 명동·제주 호텔, 네곳 매각…코로나19 변수 '촉각'
- 마스턴·KT에스테이트, 임대주택 개발 '맞손' 잡은 까닭
- 마그나인베, 결성 2년만 임팩트펀드 소진 눈앞
Translated by Ryu Ho-joung 의 다른 기사 보기
- Tmon delays IPO after its chief executive change
- Hoban Construction in talks to buy Doosan Machine Tools
- Hyundai Oilbank’s IPO plan faces bumpy road
- Self-driving startup 42dot launches new funding round
- Doosan E&C’s bad asset portfolio ValueGrowth sees cash flow improve
- Emart may consider changing use of land in headquarters sale
- Doosan Infracore deal is nearing completion
- KTCU awards $412 mil in private equity mandates
- BHC Group to buy Outback Steakhouse Korea
- IMM PE to add value to Pet Friends with equity investment
더벨 서비스 문의
02-724-4102유료 서비스 안내