Mirae Asset Global Investments Co., a major financial services company headquartered in Seoul, South Korea, is cheered to learn that the asset value of Four Seasons Hotel in Sydney, Australia has soared more than 50 percent less than four years after it bought the hotel.
According to multiple sources from the financial investment industry on Tuesday, the value of Four Seasons Hotel in Sydney is estimated at 515 million Australian dollars ($388.5 million) based on the latest asset revaluation, which is up 56 percent from 330 million Australian dollars that Mirae Asset Global Investments paid for to buy a full stake in the hotel in August 2013.
An unnamed official from Mirae Asset Global Investments expected the value of the property would rise further after major improvement projects that are due to commence in the second half of this year are completed.
In addition to the rise in the property value, Mirae Asset Global Investments has been earning about an 8 percent dividend as lease income every year from Four Seasons Hotels Ltd. that manages the accommodation facility. Last year, its yield ratio was 8.3 percent.
Mirae Asset Life Insurance Co. and Mirae Asset Securities Co. also chipped in about 200 billion won ($177.2 million) together in the fund formed by Mirae Asset Global Investments to buy Four Seasons Hotel in Sydney in 2013. The Four Seasons Hotel in Sydney - located in the city center at Circula Quay - is a luxury hotel with 531 rooms that have a view of the Opera House and Harbour Bridge. The hotel is popular among foreign tourists including those from China. Its annual room occupancy rate is over 90 percent.
By Choi Jae-won
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