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Shin's return jumpstarts Hotel Lotte IPO

Shin's return jumpstarts Hotel Lotte IPO

 Lotte Group appears to be accelerating its plan to list the shares of Hotel Lotte, which holds considerable stakes in Lotte Property and  Development and other key group units, since Chairman Shin Dong-bin was released from jail on Oct. 5, industry analysts said Friday. Korea's fifth-largest conglomerate has been trying to create a holding company structure for the past few years, with Lotte Corp. at the top holding majority stakes in shopping, chemical, construction and other subsidiaries. Then, Chairman Shin, who has a 10.5 percent stake in Lotte Corp., will control all the group's units. Taking public Hotel Lotte, which Lotte Holdings in Japan currently controls, has been the key to completing the holding company structure in Korea because it reduces Lotte Holdings' stake in the nation's largest hotel chain. After the shares of Hotel Lotte are floated on the local bourse, the group reportedly plans to combine it with Lotte Corp. to create a new holding firm. To jumpstart the largely stalled process to take Hotel Lotte public, Lotte Corp. on Oct. 10 decided to acquire a 23.24 percent stake in Lotte Chemical from two affiliates of Lotte Property and Development (11.27 percent) and Hotel Lotte (11.98 percent) in separate block deals. The deals were worth 2.23 trillion won ($1.96 billion). Under the deal, the holding firm said its stake investment in Lotte Chemical will help diversify its business portfolio, which currently focuses on retail, food and beverage s. The deals came just five days after Shin was freed from detention as an appellate court suspended his sentence of corruption charges. He had been in jail since February for involvement in a corruption scandal of the impeached former President Park Geun-hye. Upon his release, Shin said: "I will make enhanced efforts on the improvement of the group's ownership structure, which has been delayed so far." Over the move, analysts said Lotte will increase momentum in addressing remaining tasks for ownership restructuring, such as embracing Lotte Chemical into the holding firm structure and the IPO of Hotel Lotte.

Create: Oct 15, 2018     Edit: Oct 15, 2018     International News
The $ 6.5 million Nakheel contract to complete the PALM Hotel project

The $ 6.5 million Nakheel contract to complete the PALM Hotel project

Master developer Nakheel today awarded a contract worth more than EUR5.6 million (AED23.7 million) for piling work at its iconic, 260H metre PALM360 luxury hotel and residential project on Dubai’s world-famous Palm Jumeirah.  The company has named the Dubai branch of BAUER Spezialtiefbau GmbH, headquartered in Germany, for the work, which will take four months to complete.  The milestone was marked today (Tuesday) at Expo Real in Munich, where Nakheel is currently showcasing EUR14 billion (AED58 billion) worth of projects, including PALM360. The process will involve driving almost 600 piles as far as 54 metres below ground in preparation for the construction of PALM360 which will be the tallest structure on Palm Jumeirah. The construction tender is expected to be released in Q1 2019, with project  completion in 2021.  PALM360 comprises the Raffles The Palm Dubai Hotel and Raffles Residences PALM360. The project will also boast the world’s largest sky pool, connecting the two towers 170 metres above ground, as well as a host of dining, leisure and wellbeing facilities. Located on Palm Jumeirah’s western crescent in 500,000 square feet of landscaped grounds, PALM360 will offer the ultimate in luxury living and leisure. Complementing 125 opulent Raffles hotel rooms are 331 Raffles-branded residences, including 16 ultra-plush penthouses spanning up to 12,000 sq ft – equivalent to four tennis courts. Each penthouse has its own infinity pool, gym, home theatre and as the name suggests, 360 degree views of Dubai.

Create: Oct 13, 2018     Edit: Nov 1, 2018     International News


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