Tsogo Sun talks about increasing its holding in Hospitality Property Fund
South African hotel and entertainment group, Tsogo Sun, has said it could increase its interest in Hospitality Property Fund to as much as 60% as part of an exchange if it reaches an agreement to sell more hotel assets to the fund. Tsogo Sun acquired a 50.6% stake in the fund, a real estate investment trust (Reit), last year in exchange for selling it 10 hotels, worth R1.78bn. It is now in talks to sell it additional hotels worth R3.3bn. "The fund is paying for properties from Tsogo with a combination of new shares and debt. We will, therefore, increase our holding to somewhere between 55% and 60%," said Tsogo Sun’s CEO, Marcel von Aulock. Tsogo, the owner of Gold Reef City and Montecasino, said in 2015 that it planned to separately list its property portfolio, but later abandoned the plan saying it would focus on building up a Reit to better compete with property rivals and create value for its hotel business and to access new properties. The talks include selling 36 hotels to the ...
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