Real estate firm Rowsley announced on Wednesday that is signed a conditional sale and purchase agreement with vendors to buy Ariva for up to S$10.6 million, in a strategic bid to expand its hospitality business.
Post acquisition, founders Cameron Ong, former chief executive and managing director of The Ascott Group and Jean-Claude Erne, former senior vice president of product, process and procurement and managing director in Europe at Ascott, will retain their posts at Ariva as executive chairman and executive director respectively.
Rowsley said, “We are delighted that we are able to attract veterans like Cameron and Jean-Claude, who together have more than 60 years of hospitality experience, to join Rowsley. They have a proven track record in value creation, expertise in turning around distressed assets and making strategic investments. These skills will be invaluable for the expansion of the Group’s hospitality business in Asia.”
Founded in 2008, Ariva has more than 6,500 room keys under management and in the pipeline, spread over 47 properties across the Asia Pacific region.
The deal will be paid in cash and the allotment and insurance of new Rowsley shares at an issue price of 15 cents each.
The final purchase price will be subject to terms and conditions set out in the arrangement which includes the achievement of cumulative net profit after tax target of S$5.2 million up till December 2019.
According to Rowsley, Ariva is financially profitable and its contribution is expected to increase over time as Ariva’s assets under management grows rapidly. Ariva also brings additional industry expertise and market access to accelerate the growth of Rowley’s current hotel brands in the Asia-Pacific region.
Rowsley, which is controlled by Singapore businessman Peter Lim, entered the hospitality business in late 2015 acquiring 75 per cent interests in Hotel Football, Café Football as well as GG Collections in the UK.
The Manchester hotels have a total of 168 room keys with 134 rooms currently in operation under Hotel Football.
Rowsley also announced the proposed acquisition of a 50 per cent stake in Finestday, in Manchester