Developer TEE Land forms JV to buy two Australia hotels

Real estate developer TEE Land is setting up a joint-venture (JV) company called Potts Point Hospitality with two partners: Peter & Jan Clark (Levey Street), and Kenmooreland.

An initial paid-up capital of $81.68 will be invested in the JV to buy the Diamant Hotel in Sydney, Australia. Potts has in turn signed a contract with KC Property to buy an existing four-star, 76-room boutique hotel on Kings Road in Sydney, Potts Point 2011, for $18.95 million. Potts is held by Tee Hospitality (a unit of Tee Land), Clark and Kenmooreland in the proportion of 55:10:35. The acquisition is expected to be completed in February 2015. It is also part of the group's strategy to build up a portfolio of recurring income generating assets in developed markets such as Australia and New Zealand that provide short- to mid-term accommodation to end users.

Clark and Kenmooreland are also Tee's JV partners in another of its Sydney hotels, Quality Hotel CKS Sydney Airport.

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Tee Land will finance its share of the acquisition cost using internal funds and bank borrowings, it said.

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