The SINPF Board announced this yesterday after securing approval from the Minister of Finance.
The transaction will increase the SINPF shareholding in Heritage Park Hotel from 10% to 20%. Nasfund of PNG will continue to hold 60% of the shares and CGA will be reduced to 20%.
The 10% share was purchased from existing shareholder CGA Properties Limited (CGA).
SINPF board said it invoked its first right of refusal (FRR) to purchase the additional shares when CGA expressed its interest to sell down part of its shares in late 2017.
NPF General Manager Mike Wate said this move was a good outcome for the Fund and its members as Heritage Park Hotel has proved to be a very good investment since the original 10% was purchased in June 2009.
“We are pleased our members will receive the high returns this investment will provide,” Mr Wate said.
“We are also pleased we have now increased the equity of Solomon Islands in a business that operates in a property that we have a strong historic attachment to, by 100%,” he added.
“This means we will get double the returns that we were getting each month. It means more money staying in Solomon Islands.”
Mr Wate said SINPF had previously requested to buy additional equity from Nasfund but Nasfund would not sell as Heritage Park Hotel was amongst their top investments.
“The returns from Heritage Park Hotel are consistent and solid.
“Our returns since June 2009 are almost equal to our $28 million initial investment and we have benefitted from the improved capital appreciation of the business and property as well.
“The company asset is now worth more than $480 million.”
Mr Wate added the future for Heritage Park Hotel is bright.
Heritage Park Hotel rates highly on all rating sites and is number one on Trip Advisor.
Mr Wate said the Hotel has achieved these high standards through its focus on providing world class hospitality.
The Hotel employs a full time trainer and the culture of the hotel is on continuous improvement.
The Hotel slogan “When only the Best will do” has existed since opening day.
Heritage Park Hotel has been judged as the Best Business Hotel in Solomon Islands in 2018 by the Travel & Hospitality Publications of UK.
“The Hotel is pleased with this recognition and continues to move forward with new plans to improve the guest experience,” Mr Wate said.
Over Easter after many months of planning and working with an international interior designer the Hotel now boasts a new look foyer and restyled fine dining restaurant and casual dining café.
“Guests are excited and very complimentary of the changes,” Mr Wate said.