Mantra invests in Outrigger brand
Mantra to raise capital for Outrigger acquisition
Friday March 20 2015, 1:00pm
Mantra Group announced yesterday that it has entered into an agreement to acquire Outrigger Hotels & Resorts Australia Pty Ltd for $29.5 million.
To do this it has launched a fully underwritten institutional placement to raise approximately $50 million to assist in funding the Outrigger Acquisition as well as providing Mantra Group with additional capital to fund identified pipeline opportunities.
In the deal Mantra will acquire 4 Outrigger resort properties in Australia:
- Outrigger Surfers Paradise;
- Outrigger Twin Towns Resorts, Coolangatta;
- Outrigger Little Hastings Street Resort & Spa, Noosa; and
- Boathouse Apartments by Outrigger Airlie Beach
These properties will boost Mantra impressive portfolio by 984 rooms and are located in some of Australia’s key holiday destinations. Mantra Group already has a long-standing and high performing presence in these markets.
Settlement of the Outrigger Acquisition is expected to complete by June 2015, subject to closing conditions customary for an acquisition of this nature.
Mantra Group’s CEO, Mr Bob East, said: "The Outrigger Acquisition is a natural fit for Mantra Group, extending the Group’s footprint in key leisure destinations.”
“This acquisition is complementary to our existing portfolio and, together with future pipeline growth initiatives, is expected to supplement Mantra Group’s strong organic growth with incremental earnings. We look forward to working with the owners, guests and team members to make the transition as smooth as possible" Mr Bob East said.
Mantra brand is well known to Far North Queensland residents and holiday makers particularly in Port Douglas with 5 Mantra properties and 1 exclusive Peppers Beach Club.
Mantra Group has reported a good start to 2015 with strong operational performances in January and February with forward order bookings continuing to be robust across all the businesses.
