CDL Hospitality Trusts (CDLHT) through its wholly-owned subsidiary has entered into a new lease agreement with Hospitality Services Limited for the continued operation of Grand Millennium Auckland.
The new lease commences on Nov 24 for a term of five years with an additional five-year renewal option subject to mutual agreement.
Under the lease, CDLHT (BVI) One, a wholly-owned subsidiary of CDLHT, will receive rent equivalent to the net operating profit of the hotel, subject to an annual base rent of NZ$2.0 million (excluding GST).
CDLHT is responsible for furniture, fixtures and equipment as well as capital expenditures of the hotel. The rental framework remains unchanged from the final year of the previous lease which had been operating on a holdover basis since Sept 6.
Hospitality Services Limited is a wholly-owned subsidiary of Millennium & Copthorne Hotels New Zealand Limited (MCK), which is wholly owned by City Developments Limited, a controlling security holder of CDLHT.
Units in CDLHT closed 0.5 cents higher or 0.61% up at 82.5 cents on Nov 24.
