Monday, March 08, 2010

OTML land men aquire Australia hotel

Brisbane's Quality Inn Airport Heritage is worth A$9.25m

LANDOWNERS at the Ok Tedi mine in Western province have acquired a hotel in Brisbane, Australia, for A$9.25 million (K22.95 million), The National reports.

This latest acquisition of the four-and-a-half star hotel brings to total value of K56 million in assets currently owned by the 5,000-plus landowners in the 12 mining villages.

The purchase of the Quality Inn Airport Heritage hotel has been made possible through royalty proceeds from Ok Tedi Mining Ltd (OTML) paid to the Ok Tedi Royalty Investment Trust (Royalty Trust).

The Royalty Trust is one of several landowner trusts that OTML administers for the mine- impacted communities.

The Royalty Trust operates to invest funds from the royalties that are paid monthly by OTML in investments which provide a good rate of return and capital.

The hotel has 40 deluxe and executive suites and is located centrally between Brisbane city and the airport, located about seven minutes drive to either location.

It has fully air-conditioned rooms with cable television, internet access, mini bars and private balconies.

Trust administrator of the Royalty Trust Aubrey De Souza said the hotel was acquired after a vigorous due diligence process.

“The hotel is performing really well … it is having nearly 90% to 100% occupancy every weekday,” he said.

He said the acquisition of the hotel was done as a result of a strategic plan approved three years ago by the trustees of the Royalty Trust to diversify the Royalty Trust’s investments in a balanced portfolio mainly in property, shares and cash in PNG and overseas.

“We thought it would fit our strategic plan for our properties to be also offshore.

“So that is why we were looking for properties in Australia and we bought that hotel,” Mr De Souza said.

“The strategic plan is that by 2013, which is the scheduled mine closure date, we are targeting to have K100 million worth of investments,” he added.

Currently, the 12 mining villages have properties in Port Moresby worth more than K20 million.

They also have shares in companies listed on the Port Moresby Stock Exchange worth K3 million and also on the Australian Stock Exchange (A$3 million or K7 million).

They also have a twin otter aircraft, leased to Airlines PNG.

 “We are expecting higher returns from those investments. And we are securing these monies for the landowners’ future and that’s our plan,” he said. 

Mr De Souza added that the Royalty Trust was a model for other trusts in PNG to follow.

10 comments:

  1. Anonymous4:33 PM

    Congratulations to the Landowners, their executives and all parties making it possible for the expansion in asset aquisition to that in Australia. This is a definte assurance of growth and confidence in the local people's investments.

    ReplyDelete
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  3. Reginald Renagi4:34 PM

    Congratulations to the Western Province landowners for their recent purchase of a 4.5 star hotel as a good property investment for the future. I envisage more future real estate investments by PNG landowners in Australia as a good thing for both countries.

    ReplyDelete
  4. Anonymous4:31 PM

    Although the Land owners are owners, what tangible benefits in terms of profits, health services, education, road net work and clean water supply are they benefiting?

    The Management are being paid fees for looking after these trust accounts.

    Just when OKTEDI may be winding down, will the investment be there after the umbrella companies managed under OTML continue? When the people need the basic services, can there be funds available.

    Its just a scary feeling.

    Bapa Bomoteng

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