Canali Logistics Pte Ltd entered into a sale and purchase agreement to acquire Hotel Grand Chancellor Pte. Ltd. from Hotel Grand Central Limited (SGX:H18) for approximately SGD 250 million in cash on June 30, 2014. The buyer has paid SGD 18.6 million upon signing of the agreement, SGD 55.8 million till December 30, 2014 and remaining SGD 173.6 million on completion or such other dates mutually agreed. For period ending December 31, 2013, Hotel Grand Chancellor reported net profit of SGD 3.7 million and net assets of SGD 125.3 million. Upon completion, Hotel Grand Chancellor will cease to be a wholly-owned subsidiary of Hotel Grand Central Limited.

The transaction is subject to various conditions precedent including approval of shareholders of Hotel Grand Central Limited and the passing of a resolution by the Board of Directors and/or shareholders of Hotel Grand Central approving the transaction. As of January 16, 2015, all the deal conditions has been fulfilled. The transaction is expected to be completed by January 15, 2015. The proceeds from the sale of Hotel Grand Chancellor will be used for repaying the outstanding loan with UOB, for payment of sales commission and legal fees shall be placed into interest bearing bank term deposits pending a decision by the Directors of Hotel Grand Central on future investment opportunities. The extraordinary general meeting is expected to be held on September 12, 2014. Drew & Napier, LLC acted as a legal advisor to Hotel Grand Central. DTZ Debenham Tie Leung acted as valuer in the transaction for Hotel Grand Central.

Canali Logistics Pte Ltd completed the acquisition of Hotel Grand Chancellor Pte. Ltd. from Hotel Grand Central Limited (SGX:H18) on January 15, 2015.