MCK settles Sofitel Brisbane Central purchase

MILLENNIUM & COPTHORNE HOTELS NEW ZEALAND LIMITED

N Z X A N N O U N C E M E N T 15 December 2023

MCK and Millennium & Copthorne Hotels Limited settle purchase
of Sofitel Brisbane Central Hotel

Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK) and its parent company Millennium &
Copthorne Hotels Limited (M&C), subsidiaries of Singapore-listed City Developments Limited (CDL), are
pleased to announce that they have, through a 50:50 joint venture, completed the acquisition of the Sofitel
Brisbane Central hotel in Australia from Brookfield Asset Management. As advised in March this year,
the purchase price was A$177.7 million (approximately NZ$190.8 million*), or A$427,000 (approximately
NZ$458,625*) per key (the Acquisition).

The acquisition used MCK’s existing financial cash resources and bank funding facilities of NZ$20.0m to
complete its share of the acquisition.

MCK Managing Director Stuart Harrison outlined what the newly-acquired hotel would bring to MCK’s
overall business.

“The impact to our overall revenue and profit for 2023 as a result of settling the purchase will be minimal
as we will not be receiving any meaningful contributions from its operations before our 31 December year
end. We have been able to monitor the hotel’s overall trading performance this year which has included
events such as FIFA Women’s World Cup, a State of Origin rugby league game and other international
artist events which show how strong the Brisbane and Queensland location is. We are encouraged by its
strong performance in 2023 especially in its key corporate and leisure market segments where Central
Brisbane Hotels recorded September YTD Occupancy of ~73% and ADR of ~A$235.

“The impact of the use of our cash reserves held in Australia together with the use of our existing banking
facility will be shown in our 31 December financial statements. This acquisition will not put pressure on
our overall debt profile or banking covenants with an LVR of 12.4% and it did not require an equity raise.

“The settling of this acquisition will be a critical step forward in our “Revive” strategy and we expect that
the hotel’s performance will help enhance MCK’s overall results next year as we optimize operations in
New Zealand and create new opportunities in Australia”, said Mr. Harrison.

Mr. Harrison noted that Sofitel Brisbane Central has unique strengths as an established fixture in the
Brisbane / Queensland market for meetings, conferences, and incentives and the hotel would continue to
be managed by the Accor Group as a Sofitel hotel. Management will work with the Hotels Manager to
determine where any enhancements can be made to the property by means of refurbishment plans, and
we will update shareholders as we complete the assessment and put plans in place.
(*: NZD / AUD exchange rates used are 1 / 0.9314 as at 30 November 2023)

“Its key strengths in many areas made this acquisition very attractive. We were particularly aware of its
reputation in the Australian Conference and Incentive (‘C&I’) Market. MCK also has a long-established
reputation as a leading player in the New Zealand C&I markets so one of our immediate priorities will be
to determine what synergies we can create between that hotel and our network to maximize revenue and
client demand for both”.

“Having the ability to host events at MCK-owned properties in New Zealand and Australia will be beneficial
for us in the medium to long term”, he said.

Sofitel Brisbane Central at a glance:


MCK Chairman Colin Sim said that he was very pleased that the transaction had settled.

“We have been working very hard since we announced the acquisition in March, and we are really looking
forward to having this excellent hotel as part of our property portfolio. On behalf of the MCK Board, I
would like to thank Stuart and his team and our advisors in New Zealand and Australia together with the
global Millennium & Copthorne team for their efforts”, he said.


-ENDS-
Issued by Millennium & Copthorne Hotels New Zealand Limited

About Millennium & Copthorne Hotels New Zealand Limited

Millennium & Copthorne Hotels New Zealand Limited (NZX:MCK) is the only NZX listed hotel owner – operator with 18
owned / leased / franchised hotels based in New Zealand under the Millennium, Grand Millennium, M Social, Copthorne
and Kingsgate brands. As part of the Millennium & Copthorne Hotels group, we are proud to be part of a global network
of over 120 properties in gateway cities across Asia, Europe, North America, the Middle East and New Zealand. MCK
is also the majority shareholder in land developer CDL Investments New Zealand Limited (NZX:CDI) and also has
property interests in Australia through its Kingsgate Group subsidiaries.

For more information, visit our website:
www.millenniumhotels.co.nz

Location
249 Turbot Street, Brisbane City QLD 4000, Australia
The Hotel
A 5-star landmark hotel prominently located in the heart of Brisbane CBD,
overlooking ANZAC Square and Post Office Square, with direct access to Central
Railway Station, the city’s main transport hub.
Rooms & Suites
416 (379 rooms and 37 suites)
Restaurant & Bars
6 restaurants, bars and lounges
Meetings & Conferences
Ballroom Le Grand and 8 meeting rooms
Facilities
• Heated outdoor swimming pool and sundeck, plus an Elite high-
performance gym
• Spa, hair salon and medical clinic
• Undercover parking for 220 vehicles
• Rooftop helicopter pad
Land Tenure
• 99-year from 25 May 2021