The agreement, first revealed by The Australian in March, is selling the year's biggest hotels, falling just shy of the record $ 463 million Chinese insurer Insurance Group paid Sol Sydney Sheraton on the Park last year.
The agreement was announced during the first quarter results of the company for Hilton Worldwide CEO Christopher Nassetta, who said the group was taking advantage of favorable market conditions to sell the asset at an attractive price in a fiscally efficient manner.
"The sale price is $ 442m (a) about 15 times earnings before interest, taxes, depreciation and amortization and adjusted multiple is subject to a management agreement for 50 years," he said.
Hilton recently completed sale $ US1.95 billion ($ 2.47bn) of its flagship hotel, the Waldorf Astoria in New York, to Anbang Insurance Group of China, and comparing the debt back.
Mr. Nassetta said there may be other hotels to be sold, but warned that "it would be quite modest" and Hilton would most likely perform structured operations, rather than selling the assets.
For Bright Ruby, buying the famous Sydney property in the heart of George Street will increase its portfolio of leading issues of international hotels and office towers. It moves by the investment house have previously changed values Hotels in the region with its 2013 purchase of $ S1.1bn Grand Park Orchard Hotel in Singapore to establish a baseline, and a yield of about 6 was paid percent by Hilton.
Bright Ruby Foundation Shandong Du family won the support of a clique of Chinese investors to help land the Singapore property, but it is unknown if other investors are involved in Sydney.
The company is well versed in the Australian property sector. It owns two office buildings in Sydney - 10 Barrack Street and 231 Elizabeth Street - and has shown interest in the complex $ 500 million in Office 420 George Street Sydney is to come on the market soon.
JLL Hotels and CEO of Hospitality Group Australasia, Craig Collins, negotiated the Hilton sale outside market but not return calls yesterday.
Buy Bright Ruby comes as Chinese investors swarm over the luxury Westin Hotel Sydney, expected to sell for more than $ 400 million.
That offer by GIC Real Estate is inclined at first the Hilton deal since the hotel is located in Martin Place, and has a management agreement short. JLL and Colliers International are managing this process.
Australian hotels are a key target for the Chinese capital, which last year led to a 86 percent jump in the volume of transactions in the hotel market of $ US2.2bn, says JLL.
It said the traditional capital markets of Southeast Asia origin are being complemented by new investments in China, in particular, and that these new players headed "increased notably competition for hotel assets cousins of Australia".
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