Kop Limited 5I1 has, through its subsidiary, Kop Properties (UK), entered into a purchase agreement with Bannatyne Hotels Limited to buy Charlton House Hotel & Spa for GBP3.1 million ($5.1 million) on Feb 28.
Bannatyne Hotels is a company that operates hotels which are all based in England.
Located in the Somerset Mendips in the UK, the hotel has 28 en-suite guest rooms and is known for its unique country house experience. The hotel comes with a private members’ health and fitness club, beauty spa, restaurant, function rooms and wedding venue.
The acquisition of the property will allow the group to broaden its operations in the hospitality industry, says Kop Limited in its statement dated March 1. It also marks the group’s re-entry into the UK market. The property is expected to provide the group with a growing stream of recurring income and cash flow in the UK where demand in the hospitality industry could increase.
The consideration took several factors into account such as the location of the property and the potential uplift in its value with minor refurbishments to be carried out.
The consideration will be funded by internal cash resources.
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The transaction is expected to be completed by March 3.
As at 9.34am, shares in Kop are trading flat at 3.8 cents.
