Mandarin Oriental continues to realise value from real estate
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Mandarin Oriental continues to realise value from real estate

Mandarin Oriental hotel group has just sold two more luxury apartments at The Residences at Mandarin Oriental, Atlanta in Buckhead. The units sold for $1.9 million each. This sale marks four at the location this year alone (the previous units were sold for $2.6 million and 2.4 million respectively), and it demonstrates something that has pushed Mandarin’s share price through the roof recently: the company has some seriously valuable real-estate.

Mandarin Oriental’s share price has surged recently

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SOURCE: Yahoo Finance

The company’s share price has appreciated by more than 60% so far this year, as investors wake up to the value that Mandarin has locked in its brick-and-mortar holdings, and the fact that the company is willing to divest itself of them. Karen Rodriguez, the Residences exclusive listing broker, has closed more than $60 million sales of units at The Residences since taking over in the project in 2013, and she has more on offer, saying:

“I have seven tower units remaining and two weeks ago we started the construction of the 10,000-square-foot two-story penthouse into two separate full floors.”

However, sales at the Residences are relatively small news compared to the prospective sale of some of Mandarin’s other assets. Earlier this month, it was suggested that the company could sell its Excelsior property in Hong Kong. Following on the heels of a massive government sale the previous month, which boosted the value of the Excelsior’s land, this property could bring in as much as $4.38 billion for the hotel group.

The Excelsior is a four-star hotel that was opened in 1973 – it is known to locals as a part of Hong Kong’s colonial past, and familiar to western moviegoers as the location of 1978’s Peter Sellers vehicle Revenge of the Pink Panther.

Disclosure

Dominion holds Mandarin Oriental in its Global Trends Luxury Fund.


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