PAG acquires Grand Hyatt Seoul for $475mn Hana Financial is said to provide acquisition financing, while the site development is on focus
Translated by Ryu Ho-joung 공개 2019-11-25 08:00:00
이 기사는 2019년 11월 25일 08:00 thebell 에 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)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
best clicks
최신뉴스 in 전체기사
-
- 우리금융 "롯데손보 M&A, 과도한 가격 부담 안한다"
- 신한캐피탈, 지속성장 포트폴리오 리밸런싱 체계 강화
- 하나금융, ELS 악재에도 실적 선방…확고한 수익 기반
- 하나금융, 자본비율 하락에도 주주환원 강화 의지
- 국민연금, '역대 최대 1.5조' 출자사업 닻 올렸다
- [도전 직면한 하이브 멀티레이블]하이브, 강한 자율성 보장 '양날의 검' 됐나
- [퍼포먼스&스톡]꺾여버린 기세에…포스코홀딩스, '자사주 소각' 카드 재소환
- [퍼포먼스&스톡]LG엔솔 예견된 실적·주가 하락, 비용 절감 '집중'
- [퍼포먼스&스톡]포스코인터, 컨센서스 웃돌았지만 주가는 '주춤'
- 신한금융, ‘리딩금융’ 재탈환에 주주환원 강화 자신감