Somerset Real Estate VI B.V., Horizons III B.V., Zoutelust B.V., and Caerdydd Beheer B.V., entered into a share purchase agreement to acquire Holiday Inn Eindhoven from New Century Real Estate Investment Trust.

Somerset Real Estate VI B.V., Horizons III B.V., Zoutelust B.V., and Caerdydd Beheer B.V., entered into a share purchase agreement to acquire Holiday Inn Eindhoven from New Century Real Estate Investment Trust (SEHK:1275) on September 13, 2019. The purchase price will be aggregate of €39.8 million plus current assets as at the completion date and minus the liabilities as at the completion date. The purchase price is payable by way of a deposit of €4 million paid into the Notary account upon signing of the share purchase agreement, a portion of the Initial Purchase Price amounting to €1.5 million shall be paid in full and in cash at completion by Caerdydd Beheer B.V., Zoutelust B.V., Horizons III B.V., and Somerset Real Estate VI B.V., into the Escrow Account, and will be held in the Escrow Account in accordance with an escrow agreement to be entered into with the escrow agent prior to completion, the balance of the Initial Purchase Price (that is, having been reduced by the deposit) shall be paid in full and in cash at completion by Caerdydd Beheer B.V., Zoutelust B.V., Horizons III B.V., and Somerset Real Estate VI B.V., to New Century Europe into the Notary Account and a further payment, if any, shall be made as and when required pursuant to any post-completion adjustments. Post completion, New Century Real Estate Investment Trust will cease to hold any interest in Holiday Inn Eindhoven. Holiday Inn Eindhoven reported net profit after tax of €3.9 million and total assets of €34 million for the year ended December 31, 2018. New Century Real Estate Investment Trust has obtained a written approval from its controlling shareholder, Huge Harvest International Limited. The transaction is expected to complete on or before November 28, 2019. The proceeds from the disposals are expected to be used for general working capital of New Century Real Estate Investment Trust and/or funding for future investment opportunities generally. Dechert LLP and BarentsKrans NV acted as legal advisors to New Century Asset Management Limited and Baker & McKenzie Hong Kong acted as legal advisor to DB Trustees (Hong Kong) Limited. PricewaterhouseCoopers Hong Kong acted as accountant and Cushman & Wakefield Limited as an independent property valuer to the transaction.