Three-Cornered
pp. 18-150 · Read in the full issue
Sale Of The GPH Unusual Three-Cornered Position
• An unusual situation has de veloped out of the surrender of the Grand Pacific Hotel, Suva, Fiji, by the Union SS Co. Ltd. to the Gov ernment of Fiji, and the subsequent sale of the property by the Gov ernment to Cathay Hotels Limited, a unit of the Cathay Organisation, of Singapore.
UP to June 5, no money had been received by the Union SS Co., and no price agreement had been reached between Government and Union Co., despite a series of requests by the Union Co. for settle ment.
Yet, at June 5, the hotel had been in possession of Cathay directors and management for nearly two months.
The Union Co. built the hotel 50 years ago on land rented from the Government. In November, 1958, the company advised that it would not seek renewal of the lease, and notified its intention of accepting from the Government, in terms of the original agreement, payment for the hotel property “at current valu ation”.
Not Disclosed
It appeared that the two parties must agree on a valuation. The Union Co. sent a valuer from New Zealand. The company subsequently informed the Government that his valuation was £120,000, for the hotel as a going concern.
The Government obtained at least two valuations, but did not disclose the figures to anyone. They are be lieved to have been under £lOO,OOO.
The Government, at the end of 1958, decided to sell the hotel im mediately by tender, which closed on March 31, 1959. Cathay Hotels Limited offered to pay whatever price was paid by the Government to the Union SS Co. There were two other tenders.
The Union Co. at the end of March formally handed over the hotel to the Government and, for a very brief period, the Govern-, ment owned the hotel, and the name of one of its high officials > appeared as the holder of the liquor licence.
The Government accepted the Cathay tender, and the Cathay i people (headed by Mrs. Loke, a senior director of the Cathay Organ isation) who had come from Singa pore, entered into possession early in April.
Up to June 5, it was not known
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why no money had passed; butt it was known that Union Co. had: made requests for settlement and had indicated its determination tcc remove furniture and equipment fon sale elsewhere.
As the hotel is now running iir the midst of the tourist season, this* could have caused and it was agreed between th© parties that Cathay, pending final, settlement, should pay Union Co.( £75 per month for hire of furnitur© and equipment.
The Fiji Legislative Council was to meet in mid-June and It was expected that someone would seetol an explanation of why the Govern ment allowed the successful tend erer into occupation of the hotel; before the Government and th© Union Co. had agreed upon th© amount of compensation to be paid) —which amount, of course, governedb the amount to be paid by Cathay to the Government.
The two unsuccessful tenderers were interests representing Mm Barry Philp, the Mocambo hotel owner, and interests associated withn Mr. H. B. Gibson, who is a mem ber of the Legislative Council.