Hotel So developer Dave Henderson borrowed money from South Canterbury finance. Photo / Supplied
A rich Singaporean hotel investor is tipped to have bailed taxpayers out of Christchurch's Hotel So by buying it for about $20 million.
Yesterday, reports had Michael Kum, who heads LM Investment Management, as the mystery buyer.
After spending nearly $1 billion in the last year on Australian hotels,
Asian investors are keen for well-priced properties in New Zealand.
The 283-room Hotel So fits the bill and will be renamed as part of a bigger chain.
Kum has not bought here before but his company splashed out in Sydney buying the Four Points by Sheraton, Australia's biggest hotel, for A$185 million ($243.4 million).
He also bought the Swissotel Hotel in Sydney for A$90 million, reports in Asia said.
Kum beat 19 competitors for Hotel So on Cashel St, developed by bankrupt property man Dave Henderson.
Henderson borrowed more than $20 million from South Canterbury Finance.
Investors in the failed finance company have been repaid $1.6 billion by the Government.
Those involved in the sale gave little away this week, other than saying the land and building went to a private investor for an undisclosed sum after a keenly contested international marketing campaign.
Joint receivers Stephen Tubbs and Colin Gower of BDO Christchurch took the hotel to the market and the international expression-of-interest campaign was handled by Dean Humphries of Jones Lang LaSalle Hotels in Auckland and Craig Collins for Australasia.
The sale signals renewed activity as a result of improved confidence in the tightly held New Zealand hotel market, a statement from involved parties said.
Humphries said the campaign generated an exceptionally large response both locally and internationally, six parties lodging genuine offers.
