Far East Consortium to sell 50pc stake in Ritz Carlton hotel in Perth for $500m

Far East Consortium International (0035) said it has agreed to sell a 50 percent stake in Ritz Carlton hotel in Perth, Australia for A$100 million (HK$515 million). 

The 50 percent interest in three companies that control the hotel will be sold to AMTD Idea's Generation Essentials Group. 

The developer has received the first installment of A$20 million and the second payment of A$40 million is expected to occur on December 29, according to a filing on Monday. 

The remainder will be paid in four installments through 2027, it said. 

The three firms are required to prepare a completion account for the determination of the net asset value, based on which, the final consideration may change, the filing read. 

Far East expects it to record a gain of A$32.5 million from the transaction. The firm believes the move will realize the value of the hotel, allow the capital to be recycle and increase liquidity and reduce net gearing of the group.

It will still hold a 50 percent in the hotel following the transaction.