Purchase Agreement for Sofitel Brisbane Central Hotel

MCK and Millennium & Copthorne Hotels Limited have entered into a 50:50 joint venture to purchase the Sofitel Brisbane Central hotel in Australia from Brookfield Asset Management for A$177.7 million (NZ$189.0 million).

The purchase is subject to Australian Foreign Investment Review Board approval, liquor licence transfer and landlord’s consent, and is expected to be completed in the second half of this year.

It will be managed by the Accor Group under its Sofitel brand.

MCK will use its existing cash resources as well as external borrowing to complete its 50% share of the purchase price.

The purchase will allow MCK to diversify and broaden its asset base in Australia and benefit from significant sporting and cultural events.