China Post offloads first eleven

[photopress:China_Post.jpg,full,alignright]As announced earlier on this site China Post is getting back to its core business and divesting itself of assets which are not part of its main task. Thus it has sold 11 of its star-rated hotels to a subsidiary of Hong Kong-based VXL Capital.

China Post decided to focus on its core postal businesses to make it more efficient and competitive.

Wang Biao, director of the general office of China Post, said, ‘This first hotel asset transfer is an important move in our strategic restructuring — to cut non-core assets and move away from non-core businesses.’

China Post selected the first batch of 30 hotels in March and has listed 25 on the Shanghai United Assets & Equity Exchange (SUAEE) for trading, with more deals expected soon. The company plans to list more than 400 hotels in this way as part of its sale of its hotel assets as it gets rid of its non-core businesses.

China Post has about 1,000 properties in its non-core sector, ranging from hotels and hospitals to printing facilities.

The 11 hotels sold in this initial deal are in Hubei, Shandong, Jilin, Sichuan, Shaanxi and Gansu provinces, and the Xinjiang Uygur Autonomous Region.

The buyer, VXL Capital, is primarily engaged in property investment and financial services. It aims to tap into the mainland’s huge hospitality market by creating a chain out of the 11 hotels.

VXL Capital paid over $26 million for the 11 hotels.

Source: Cargo News Asia