Far East Consortium to Sell Ritz-Carlton Perth Stake to AMTD

Far East Consortium International (FEC) announced its plans to sell a stake in The Ritz-Carlton Perth, a luxury, 5-star hotel on the riverfront at Elizabeth Quay. The buyer, according to a Hong Kong Stock Exchange filing, is AMTD Group, a conglomerate with a portfolio spanning across the media and entertainment, education and training, and premium assets and hospitality sectors.

FEC to Sell a Stake in the Luxury Property

According to the Tuesday filing, FEC has, via a subsidiary, signed a term sheet with AMTD Group for a “possible disposal of certain interest” in the company that owns the hotel. The deal would therefore result in joint ownership of the Perth property.

Per the deal, AMTD will pay an initial refundable installment of AUD 20 million ($13.2 million) within 5 business days. However, it should be noted that the term sheet is not legally binding beyond that. FEC emphasized that no definitive agreement had been reached as of the time of the filing. Because of that, the company advised shareholders and future investors to trade with caution.

If the deal passes, it will rank as a notifiable transaction, forcing the FEC to make further public updates on the matter.

For context, The Ritz-Carlton Perth was opened in 2019 and is part of the Elizabeth Quay waterfront precinct. The property has cemented its place among FEC’s most luxurious assets in Australia.

FEC and Chow Tai Fook Enterprises Assumed Control of Queen’s Wharf Casino

Earlier this year, the embattled Star Entertainment Group reached an agreement to offload its 50% stake in Brisbane’s Queen’s Wharf casino to its Hong Kong-based partners, Chow Tai Fook Enterprises and Far East Consortium.

Per that agreement, the Australian casino company sold the assets for AUD 53 million ($34.62 million). The deal in question came following stalled negotiations and marked a vital milestone in the casino company’s continued efforts to streamline its business and distance itself from its troubled past.

The agreement saw Chow Tai Fook Enterprises and Far East Consortium assume complete ownership of the riverfront complex via their joint venture, Destination Brisbane Consortium (DBC). In the meantime, The Star assumed complete control of its Gold Coast properties, which include two hotel and residential towers.