Far East Consortium Plans to Sell Stake in Ritz-Carlton Perth to AMTD Group
Far East Consortium to Divest Part of Ritz-Carlton Perth Investment
Far East Consortium International (FEC) has revealed its intention to sell a portion of its ownership in The Ritz-Carlton Perth, a prestigious five-star hotel situated along the Elizabeth Quay waterfront. The prospective buyer is AMTD Group, a diversified conglomerate involved in sectors such as media, entertainment, education, and premium hospitality assets, according to a filing on the Hong Kong Stock Exchange.
Details of the Proposed Transaction
The filing from Tuesday indicates that FEC, through one of its subsidiaries, has entered into a term sheet with AMTD Group for a potential sale of certain interests in the entity that holds the hotel. If completed, this transaction would establish a joint ownership structure for the Perth hotel.
As part of the arrangement, AMTD is expected to make an initial refundable payment of AUD 20 million (approximately USD 13.2 million) within five business days. However, the agreement outlined in the term sheet is not legally binding beyond this initial payment. FEC has clarified that no final contract has yet been signed and cautions investors to approach the matter prudently until further developments occur.
Should the deal proceed, FEC will be required to issue additional public disclosures as it constitutes a notifiable transaction under regulatory guidelines.
For background, The Ritz-Carlton Perth, which opened in 2019, is a key luxury property within FEC’s Australian portfolio, prominently located in the Elizabeth Quay precinct.
Recent Developments: Joint Control of Queen’s Wharf Casino
Earlier in the year, Star Entertainment Group finalized an arrangement to transfer its 50% ownership stake in Brisbane’s Queen’s Wharf casino to Hong Kong-based partners Chow Tai Fook Enterprises and Far East Consortium. This transaction, valued at AUD 53 million (around USD 34.62 million), followed protracted negotiations and was a significant step in Star Entertainment’s strategy to simplify its operations and move past previous controversies.
Through this deal, Chow Tai Fook Enterprises and Far East Consortium now hold full ownership of the Queen’s Wharf complex via their joint venture, Destination Brisbane Consortium (DBC). Meanwhile, Star Entertainment retained full control over its assets on the Gold Coast, which include hotel and residential towers.
