MWB will use the proceeds to repay the debt secured on the property, and the balance will be used within the group. This disposal is part of MWB's stated intention to return cash or cash equivalents to shareholders by the end of 2007.
The deal represents a pre-tax profit of euro 3.36 million ($3.95 million) over the hotel's independent valuation at the company's latest year-end numbers. So far, MWB has raised euro 402.9 million ($472 million) through asset sales over the past two years, all at prices in excess of book value.
The sale has allowed MWB to continue "our debt-reduction program," according to chief executive Richard Balfour-Lynn.
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