Far East Consortium International Limited sold its 50% stake in The Ritz-Carlton Perth on December 8. The buyer is The Generation Essentials Group, a New York-listed company that paid AU$100m for the interest.
The deal covers FEC’s shares in Perth FEC Pty Ltd and RC Perth Operations Pty Ltd. These entities own and run the hotel at 1 Barrack Street.
Executive Director and Joint Managing Director Wendy Chiu handled negotiations for the Hong Kong-based seller. FEC expects to book a AU$32.5m gain when the transaction completes.
Why FEC Chose to Exit This Property
The sale fits FEC’s broader plan to convert hotel holdings into cash. It’s part of what the company calls its “asset-monetisation strategy.”
FEC has been reducing debt aggressively for the past three years. Bank borrowings, loans and notes fell by more than HK$8.3bn during this period. That cut the gearing ratio by 10 percentage points.
The company still owns 38 hotels with roughly 9,700 rooms. These properties span nine countries including Hong Kong, mainland China, the UK, Australia, Singapore, Malaysia, Germany, Austria and the Czech Republic. Four more hotels are under construction, which will push the portfolio to 42 properties with about 10,600 rooms total.
So selling one property doesn’t hurt the overall portfolio much.
What the Transaction Includes
The AU$100m price is structured on a net debt basis. This means any property-related liabilities transfer with the asset.
The deal hands full ownership and operations of The Ritz-Carlton Perth to Generation Essentials. Perth FEC Pty Ltd holds the property title while RC Perth Operations Pty Ltd manages daily hotel operations.
Both entities change hands completely through this single transaction. The buyer gets management control and asset ownership in one move.
How Proceeds Support FEC’s Plans
Cash from the sale goes straight into FEC’s residential development pipeline. The company has HK$61.8bn worth of housing projects lined up globally.
Chiu said the money helps fund existing developments without taking on new debt. This keeps the balance sheet stronger while maintaining flexibility for future opportunities.
FEC will keep looking for similar asset sales. The group plans to identify more non-core properties that could be sold. But it wants to maintain its presence across key markets while improving capital efficiency through selective disposals over time.
