The Grace Hotel in Rosebank, Johannesburg which was closed down in August has been sold to Southern Sun Hotel Group for R85 million.
“We are pleased to have concluded a speedy transaction with Southern Sun which is keen to establish their first hotel in the Rosebank node,” says Pieter Prinsloo, chief executive officer of Hyprop.
Property owners and Johannesburg Stock Exchange listed property company Hyprop Investments Limited say the sale of the building is in line with the strategy to divest from non-core assets.
Announcing its six months to June results in August, Hyprop said the downturn in the hospitality industry impacted negatively on the performance of the fund’s hotels, The Grace Hotel in Rosebank and Southern Sun Hyde Park.
At the time, Prinsloo said they were optimistic of announcing a solution as to what will happen to The Grace Hotel property.
The sale encompasses the sale of the entire building including the hotel premises and offices.
“We are pleased to have concluded a speedy transaction with Southern Sun which is keen to establish their first hotel in the Rosebank node,” says Pieter Prinsloo, chief executive officer of Hyprop.
He says Southern Sun is planning to re-open the hotel under their own brand in the first half of 2012.
He adds that Hyprop’s future focus in Rosebank remains the planned extensions to The Mall of Rosebank and increasing its retail footprint in the high-growth node.
The Grace transaction remains conditional on Competition Commission approval. – Denise Mhlanga
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