170
25 OPERATING SEGMENTS (CONT’D)
Major customers
The H-REIT Group’s properties, except Claymore Connect, are leased to ten (2014: ten) master lessees. The contribution
of these master lessees to the gross revenue of the H-REIT Group was $142,811,000 (2014: $149,809,000). Such revenue
is attributable to the Singapore segment, New Zealand segment, Australia segment, Maldives segment and Japan
segment.
Subsidiaries of Millennium & Copthorne Hotels plc accounted for approximately $75,333,000 (2014: $82,254,000) or
51.2% (2014: 54.2%) of the gross revenue of the H-REIT Group. Subsidiaries of Accor S.A. contributed $36,792,000
(2014: $39,045,000) or 25.0% (2014: 25.8%) to the gross revenue of the H-REIT Group.
26 ACQUISITION OF A SUBSIDIARY
On 1 October 2015, the HBT Group purchased 100% of the shares and voting interests in CDL HBT Cambridge City
Hotel (UK) Ltd ("
CCH
"), formerly known as LR (Cambridge) Limited (the "
Acquisition
"). The HBT Group has acquired
CCH in relation to the acquisition of Cambridge City Hotel in Cambridge (the "
Property
"). The Acquisition marks the
Stapled Group’s first investment in Europe and is expected to benefit the Stapled Security Holders by broadening the
Stapled Group’s earning base.
In the three months to 31 December 2015, CCH contributed gross revenue of $6,132,000 and net income before tax
of $1,373,000 to the HBT Group’s results. Had the acquisition occurred on 1 January 2015, management estimates that
the HBT Group’s gross revenue would have been $22,135,000 and the HBT Group’s net income before tax for the year
would have been $5,274,000. In determining these amounts, management had assumed that the fair value adjustments,
determined provisionally, that arose on the date of acquisition would have been the same had the acquisition occurred
on 1 January 2015.
Consideration transferred
$’000
Cash paid
136,083
Effect of the acquisition of CCH on cash flows
Total consideration for 100% equity interest acquired
136,083
Acquisition-related costs
2,442
Less: Cash at bank of subsidiary acquired
(4,961)
Net cash outflow on acquisition
133,564
Acquisition-related costs
The HBT Group incurred a one-off transaction costs of £1,163,000 ($2,442,000) on legal fees, acquisition fee and due
diligence costs. These costs have been included in "other trust expenses" and "HBT Trustee-Manager’s acquisition fee".
NOTES TO THE FINANCIAL STATEMENTS
