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Industrial and Commercial Bank of China - Park Hyatt Hotel, Melbourne

Background 

We advised Industrial and Commercial Bank of China (ICBC) and China Construction Bank on their funding of China's Fu Wah International Group's purchase of the Park Hyatt Hotel in Melbourne, involving the 240-room hotel and an adjoining commercial car park. This transaction involved funding from the Australian branch of two major Chinese banks and included related funding from ICBC's China branch to a British Virgin Islands domiciled parent of the ultimate hotel-owning entity. 

ICBC provides a variety of financial products and services. It was established in 1984 as Industrial and Commercial Bank of China, changed its name to ICBC in 2005 and listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange in 2006. 

Fu Wah International Group is involved in real estate development, hospitality and art & culture services. The group's existing property portfolio includes Regent Beijing hotel, Park Plaza Wangfujing hotel and Sandalwood Beijing Marriott Executive Apartments, among others.

Client objectives

This deal was innovative because it involved the first Australian hotel acquisition by one of China's major real estate and hospitality groups from Singapore's sovereign wealth fund. This purchase continues a wave of recent Chinese investment in the Australian property market. 

Our role

We advised the banks on the financing of the significant and high-profile hotel acquisition, which also required advice about the hotel management, property and hedging aspects. It also demonstrated our team's particular expertise in hotel financing due to the management aspects of the transaction, which included negotiations between the parties and the Hyatt Group's head office.

Senior team

Ben Burney
Partner
t:+61 2 9373 1475+61 2 9373 1475
m:+61 401 093 258+61 401 093 258
o: Sydney