Purchase Agreement for Sofitel Brisbane Central Hotel

**MCK and Millennium & Copthorne Hotels Limited Sign Purchase Agreements For 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, entered into a conditional sale and purchase agreement to acquire the Sofitel Brisbane Central hotel in Australia from Brookfield Asset Management at a purchase price of A$177.7 million (approximately NZ$189.0 million*), or A$427,000 (approximately NZ$454,255*) per key (the Acquisition). (*: NZD / AUD exchange rates used are 1 / 0.94 as at 20 March 2023) Speaking for MCK, Managing Director Stuart Harrison said that this was a strategic acquisition that would enable MCK to further diversify and broaden its asset base in Australia. "We are delighted to have entered into the sale agreement for the Acquisition and to be partnering on the Acquisition with our parent company M&C. MCK has wanted a foothold in Australia for a very long time and the acquisition of this well-known and well-located hotel would allow us to participate in the Australian hospitality market in a meaningful way", he said. Mr. Harrison said that the acquisition, if completed, will represent an important milestone for MCK. "This is a landmark property in a location which is very popular and well known to Australians and New Zealanders and will benefit from significant sporting and cultural events, which include the 2032 Olympic and Paralympic Games, as well as the 2027 and 2029 Rugby World Cup to take place in Australia. MCK looks forward to adding this interest in the Brisbane hotel to our hospitality portfolio after a competitive tender process". The Acquisition is subject to various conditions, including Australian Foreign Investment Review Board approval, liquor licence transfer and landlord's consent. Completion is expected to occur in the second half of this year. Sofitel Brisbane Central will continue to be managed by the Accor Group under its Sofitel brand. MCK will be using a combination of its existing cash resources as well as external borrowing to complete its 50% share (A$88.85 million) of the purchase price. It will not be undertaking a capital raising to complete the Acquisition. Sofitel Brisbane Central at a glance: --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: o Suzette Restaurant o Prive Restaurant/Private Dining Room o Cuvee Lounge Bar o Chouchou Patisserie o Bistro Jacque o Club Millesime Executive Lounge --Meetings & Conferences Ballroom Le Grand and 8 meeting rooms --Facilities o Heated outdoor swimming pool and sundeck, plus an Elite high-performance gym o Spa, hair salon and medical clinic o Undercover parking for 220 vehicles o Rooftop helicopter pad Land Tenure = 99-year from 25 May 2021 MCK applied for, and has been granted, a waiver from the requirement under Rule 5.2.1 of the NZX Main Board Listing Rules to obtain the prior approval of MCK shareholders in relation to the Acquisition. NZRegCo will announce that waiver decision today. A waiver was required because: o MCK's share of the purchase price is greater than 10% of MCK's Average Market Capitalisation (as defined in the NZX Listing Rules (the Listing Rules). As such, the Acquisition will be a "Material Transaction" under the Listing Rules; and o M&C is a "Related Party" of MCK for the purposes of the Listing Rules. -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 End CA:00408779 For:MCK Type:MKTUPDTE Time:2023-03-22 16:00:13