Hospitality Property Fund (HPF) has entered into negotiations with Tsogo Sun to acquire further hotel assets of about R3.3 billion (€232m).
An earlier deal between the two companies saw Tsogo Sun acquiring control of HPF by vending a portfolio of hotels into HPF in exchange for shares, after a deal was approved by the Competition Tribunal. As a result, an additional 16 hotels were added to Tsogo’s portfolio, including properties from Radisson, Protea and aha.
HPF also bought a portfolio of 10 hotels from Tsogo Sun in exchange for shares.
Unable to comment further on the deal, Marcel von Aulock, CEO of Tsogo Sun, told Tourism Update: “Basically it's just following through on the strategy to bulk up HPF and move Tsogo's hotel assets into a Real Estate Investment Trust, as we have set out all along.”
Tsogo has not revealed which properties will form part of the new deal.
The transaction will be funded by HPF through a combination of debt and equity. HPF is also preparing to undertake an underwritten rights offer to raise approximately R1.8 billion (€127m).