St Laurence has another go at checking into the Hilton

By NZPA

Saturday 22nd January 2005

Wellington-based investment group St Laurence is having another tilt at Auckland's landmark Hilton Hotel.

St Laurence said it would soon offer fixed interest bonds paying 10.25% per annum for three years in a bid to raise $9.5 million.

That money would go towards buying the Hilton Hotel on Auckland's Princes Wharf for $51 million.

The balance of the price would be made up of $15m in equity and a mortgage of up to $28m from the ASB Bank.

Last August St Laurence said it planned to buy the hotel for the same price, raising $29.7 million of that through a "proportionate ownership scheme".

The balance of the purchase price would be met with secured borrowings. But the company abandoned the scheme in October having failed to attract investors.

St Laurence managing director Kevin Podmore said his company still believed the hotel represented "a quality investment opportunity".

"The bonds offer makes the investment a reality and overcomes the factors that stood in the way of the earlier proposal," Podmore said in a statement."

Under the offer announced Friday the bonds would have an issue price of $5000, interest would be paid quarterly and St Laurence reserved the right to extend the term for another two years.

Under St Laurence's proposal the 166 room hotel, which opened in 2001, would be bought fully leased to Princes Wharf Hotel Ltd.

Hilton Group subsidiary Hilton International would continue to operate it until 2016.

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