DoubleTree Hilton

Hilton Rose Hall -Sagicor X Fund recent acquisition

Sagicor Real Estate Fund raked in $5.2 billion for the 747,668,375 shares offered in a rights issue to fund expansion plans for the company. The company says the expanded issue was oversubscribed. Initially, 598,134,700 were provisionally allotted shareholders, later increased by 149,533,675 shares.
The additional shares were available to shareholders as shares over and above their provisional allotment. The funds received from the Rights Issue will be invested as equity in a new subsidiary, X Fund Properties LLC established in the USA. X Fund Properties LLC will purchase the DoubleTree Hilton at the Entrance to Universal in Orlando, Florida.
The DoubleTree by Hilton at the entrance to Universal is 742 guest rooms hotel with over 62,800 square feet of meeting and convention space. It is located in Orlando at the entrance to the Universal Theme Park. The purchase price for the Hotel is US$75 million. The balance of the purchase price is expected to be financed by a US institutional lender.
Notwithstanding, the overwhelming support the stock is overvalued at the right issue price of $6.95 each. Sagicor Real Estate Fund reported profit before taxation in the first quarter of $293 million from revenues of $1.19 billion, the net position in the June quarter was only $72 million from just $37 million less income from the hotel.

Investors grab Sagicor rights

Hilton Rose Hall Sagicor X Fund recent acquisition

Investors in Sagicor Real Estate Fund have gobbled up more than the 598,134,700 provisionally allotted shares in the Rights Issue, the company announced that as at August 24. Pursuant to the terms of the Rights Issue the Directors have decided to release a further 149,533,675 shares in the Un-allocated Pool.
These shares (“Up-sizable Shares”) are available to shareholders as additional shares over and above their provisional allotment.
Shareholders may apply for Up-sizable Shares at the rights issue price of J$6.95 per share in one of 2 ways: (a) by completing an Application for additional shares; or (b) by completing Box 5 in their Provisional Allotment Letter (in the case of shareholders who have not yet returned their Provisional Allotment Letter).
If the aggregate number of shares applied for from the Un-allocated Pool shall exceed the number of shares available in the Pool, then all applications will be scaled down pro rata.
The Rights Issue will close at 4:30 p.m. on September 2, 2015 – unless extended by the Directors.
The funds received from the Rights Issue will be invested as equity in a new subsidiary X Fund Properties LLC established in the USA. X Fund Properties LLC will purchase the DoubleTree Hilton at the Entrance to Universal in Orlando, Florida.
The DoubleTree by Hilton at the Entrance to Universal is 742 guest rooms (inclusive of 17 suites) hotel with over 62,800 square feet of meeting and convention space. It is located in Orlando at the entrance to the Universal Theme Park. The purchase price for the Hotel is US$75,000.000. The balance of the purchase price is expected to be financed by a US institutional lender.