Quantum buys hotel from Protea
Altx-listed diversified property company Quantum Property Group announced on Friday, 21 Ocotber 2011, that its subsidiary A Million Up Investments (AMU) will acquire the remaining 50% of 15 on Orange from Protea Hospitality Group.
The company 15 on Orange operates the African Pride 15 on Orange hotel.
A mixed-use development, the hotel is situated at the base of Table Mountain, along Orange Street, Cape Town.
Quantum has called 15 on Orange the bedrock of its portfolio. It said it wants to build a quality portfolio with diversified revenue streams and is pursuing investment and development opportunities across the property.
The acquisition was a key element in negotiations with Protea, which has concluded a new 20-year management deal, Quantum said. Protea manages the hotel under the African Pride brand.
"The (Quantum) board considers the acquisition to have strategic and significant value," Quantum said.
The acquisition took effect on 1 September.
Quantum said 15 on Orange positions the group to take advantage of the robust tourism industry in Cape Town. It also said 15 on Orange owes Protea R6,9m lent for furniture, fixtures and equipment, as well as R25,8m lent for working capital.
In terms of the agreement, 15 on Orange would repay the furniture, fixtures and equipment loan to Protea by August next year. The loan would bear interest at the prime rate.
As part of the repayment of the working-capital loan, AMU has agreed to sell an R11m penthouse in the hotel.
The remainder of the loan would also be repaid by August next year.
Source: Business Day
Source: I-Net Bridge
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