Second bid to move into Hilton on Princes Wharf

Wellington-based investment group St Laurence is having another go at buying Auckland's landmark Hilton Hotel.

St Laurence said yesterday that it would offer fixed-interest bonds paying 10.25 per cent per annum for three years in a bid to raise $9.5 million.

That money would go towards buying the Hilton Hotel on Princes Wharf for $51 million.

The balance of the price would be made up of $15 million in equity and a mortgage of up to $28 million from the ASB Bank.

Last August St Laurence tried to buy the hotel for the same price, but failed to attract investors and abandoned the scheme in October.

St Laurence managing director Kevin Podmore said his company still believed the hotel represented "a quality investment opportunity".

"The bonds offer makes the investment a reality and overcomes the factors that stood in the way of the earlier proposal," he said.

Under the offer announced yesterday the bonds would have an issue price of $5000, interest would be paid quarterly and St Laurence reserved the right to extend the term for another two years.

The 166-room hotel, which opened in 2001, would be bought fully leased to Princes Wharf Hotel. Hilton Group subsidiary Hilton International would continue to operate it until 2016.

- NZPA