Resolving any ambiguity, Pakistan Hotels Developers Limited (PHDL) has announced that the transfer of the Regent Plaza Hotel building to the Sindh Institute of Urology and Transplantation (SIUT) is anticipated to be finalized by May 2024, contingent upon fulfilling all stipulations outlined in the sale agreement.
PHDL disclosed in its quarterly report to the Pakistan Stock Exchange (PSX) on Thursday that it had received Rs1.45 billion as a partial payment towards the sale. This disclosure indicates that the deal might finally be going through.
Following this announcement, PHDL’s share price rose by 7.50% on Thursday, moving from Rs 435 per share to Rs 468.69 per share.
However, the book value is approximately Rs 790 per share, given that the company’s equity stands at Rs 14.3 billion and it has 18 million shares in circulation. Should the deal proceed according to the sale agreement, it could trigger an increase in the share price, aligning it closer to the share’s actual book value.
It is better to recall that the PHDL had entered into an agreement with SIUT on November 14, 2023, for the sale of Regent Plaza Hotel land and building for a lump sum sale consideration of Rs14.5 billion.
The transaction was initially scheduled to conclude after a three-month period, ending on February 11, 2024. Nonetheless, on February 12, the parties mutually consented to a 90-day extension of the sale completion deadline from the original deadline to May 11, 2024.
Additionally, PHDL saw a 28% increase in revenue to Rs 85 million and a 190% increase in net profits to Rs 87 million during the six months (July-Dec) CY2023 as compared to the same period of last year.
This increase was mainly due to the interest income earned by the company on the deposit of advance against the sale of property.
Furthermore, during this review period, PHDL contributed Rs 70 million towards sales tax and other governmental levies.
This place is bad for the hospital purpose. There will be serious issue of traffic jam on shahr e faisal.
SIUT should established more hospital facilities inside sind area , instead of buying a luxury hotel.
Thousands of poor people are traveling from internal sind to Karachi every day for the treatment, because no facility is available there.
Moreover , SIUT is not providing good facilities in hospitals and buying hotels ???
it’s an excellent move by SUIT to acquire this location for extending its services . I am sure it will also build additional PARKING SPACES in the form of a proper multi story parking building
who stop andron sindh people to build state of the art hospital?