Mirvac announced this week that it has been unable to agree terms to sell its 50% interest in Tucker Box Hotel Trust (Travelodge).
NRMA were beloved to be the counter party which would have provided the motoring group full control of the portfolio. The trust was originally conceived by JF Meridian Trust (now Mirvac) and NRMA which grew a portfolio of 13 Hotel assets managed by the Toga Group under the Travelodge brand.
Mirvac had the properties in the venture valued at $614m when it had 12 hotels with 2027 rooms before selling the Rockhampton property last year.
The current portfolio contains 11 assets with an estimated value of $600m. While apparently unable to agree on sale terms, the pair will continue to hold equal stakes in the unlisted venture that owns the hotels which includes Travelodges in the Sydney central business district as well as hotels in the Sydney suburbs of Manly, Macquarie Park, Bankstown and Blacktown. The portfolio is also represented in Newcastle, Melbourne and Brisbane.
The divestment was expected to occur by the end of FY19 and realise approximately book value. Consistent with the market announcement of 29 May 2019, Mirvac confirms that without the divestment, preliminary FY20 EPS growth guidance will be greater than 3 per cent versus FY19 (compared to greater than 2 per cent versus FY19 with the divestment).