Web-based property trading portal Quoin Online has been granted an exclusive mandate to dispose of five hotel properties owned by real estate investment trust (Reit) Hospitality Property Fund (HPF), either individually or as a collective purchase.
The 87-room Protea Hotel Hazyview, in Mpumalanga, the 70-room Imperial, in Pietermaritzburg, the 77-room Hluhluwe & Safaris, in Hluhluwe, the 135-room The Richards and the 102-room Bayshore, both in Richard’s Bay, form part of the HPF’s Protea Hospitality Group’s franchise but are not aligned with the company’s metropolitan-focused strategy and are, thus, considered noncore asssets.
HPF CEO Andrew Rogers said on Tuesday that the hotels would provide a “wonderful” business opportunity in the mid-size hotel sector.
“We are confident that…we will realise optimal market value on the properties,” he commented.
After registering their interest in the properties listed on the Quoin website, potential buyers would be sent property fact sheets, an online sale process document and a nondisclosure agreement, Quoin’s Karen Miller explained.
Those that were “selected to participate” would then have two weeks within which to make an offer, provide supporting documentation and provide proof of funding for at least 40% of the purchase price.
The submissions would be reviewed and the successful participating buyers would then enter the second phase, where they would be provided with due diligence documentation.
Interested parties would then have just over five weeks to submit final binding offers.
“The whole disposal process, from announcing [that] the properties are online to the acceptance of an offer, takes just over eight weeks,” Miller outlined.