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Crown Resorts set to launch IPO to sell 49 per cent interest in several Australian properties


Crown Resorts is set to launch an Initial Public Offering of a Real Estate Investment Trust (REIT) that would own a 49 per cent interest in some of the company’s Australian hotels.

Following a detailed evaluation, the Crown Resorts Board has, at the company’s 2016 Annual General Meeting this week, endorsed the implementation of a potential IPO of a 49% interest in some of its Australian hotels and associated retail property, which the company says is likely to include the Crown Promenade hotels in Melbourne and Perth and the Crown Metropol hotels in Melbourne and Perth.

Crown Resorts Chairman, Robert Rankin, told the AGM that Crown was “fortunate to possess a number of great assets in our portfolio and we expect they would be valued as such by the market”.

“I am pleased to announce that the Crown Resorts Board has approved the implementation of this proposed Initial Public Offer.”

Crown, which would retain 51 per cent ownership in the REIT, told the Australian Securities Exchange in a statement that if implemented, the IPO “could realise significant value for Crown Resorts shareholders, while providing the ability to maintain a majority interest in key assets within the Australian business”.

“Such an IPO would support Crown Resorts’ ongoing capital management strategy and allow Crown Resorts to maintain a strong balance sheet and credit profile to fund existing development projects,” the company said.

“Implementation of the IPO is subject to obtaining various approvals, consents and waivers from third parties including State Governments, regulatory bodies and the ASX in addition to obtaining final Crown Resorts Board approval and is subject to prevailing market conditions at the time of implementation.”


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