Singapore-based Hoi Hup Realty has entered right into a binding settlement to purchase the Andaz Singapore resort, in response to an announcement posted at the moment on the developer’s web site, in what ranks as the biggest ever buy of a single resort asset in Singapore.

“We’re interested in the rarity of this high-quality luxurious resort providing, its historic significance being one of many established tasks by M+S Pte Ltd,” Hoi Hup Realty’s chairman, Wong Swee Chun mentioned.

Wong’s firm is paying S$475 million ($344 million) to buy the 342-room luxurious resort from M+S Pte Ltd, a 60:40 three way partnership between Khazanah Nasional Berhad and Temasek Holdings, in response to property companies agency JLL which represented the sellers of the property.

The funding by Hoi Hup, which beforehand constructed the 250-room Marriott Courtyard within the metropolis’s Novena space, comes simply over two months after European insurance coverage titan Allianz and Singapore’s Gaw Capital acquired the workplace and retail parts of the Duo growth for S$1.6 billion.

Unlocking S$1.4M Per Key

Based mostly on the agreed transaction value, Hoi Hup Realty shall be paying S$1.4 million per key for the property, which was the primary of Hyatt’s Andaz motels to be launched in Southeast Asia final yr.

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“This file sale illustrates the boldness traders have in Singapore and its resort actual property market,” says Mike Batchelor, CEO Asia of JLL Inns & Hospitality Group, which acted because the unique advisor to M+S Pte Ltd.

The newest version to Hoi Hup’s portfolio occupies the highest 15 flooring of the 39-storey Duo Tower, providing 26 suites, a rooftop bar, solar lounge and a pool on the twenty-fifth flooring. A typical room on the 5-star boutique resort prices $377 per evening.

Wong mentioned that the resort’s location within the rejuvenated Seashore Highway / Ophir-Rochor Hall, instantly reverse GuocoLand’s S$2.4 billion business and residential complicated, gave him confidence that the asset would turn into one of many main luxurious motels in Singapore.

The resort is a twenty-minute drive from Changi Airport and 200 metres from the Bugis metro station, which is 2 stops away from Raffles Place in Singapore’s downtown core.

Underneath the phrases of the deal, Hoi Hup Realty will purchase the complete issued and paid-up share capital of Ophir-Rochor Resort Pte Ltd, the holding firm for Andaz Singapore.

Projected S$2.5B in Resort Transactions by Finish of 2019

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The settlement between Hoi Hup and M+S marks the second main transaction involving a hospitality asset in Singapore in simply over 4 weeks, with analysts anticipating extra offers as 2019 progresses.

“Along with different pipeline transactions, the sale of the Andaz is anticipated to deliver whole transacted resort quantity in Singapore to a brand new peak of S$2.5 billion by the yr finish,” mentioned JLL’s Batchelor.

Simply final month, a three way partnership between Far East Consortium and Hong Kong Funding financial institution AMTD Group agreed to pay a mixed S$289 million for the Oakwood Premier OUE Singapore.

Based mostly on the proposed transaction value, the Far East-led three way partnership shall be paying the equal of S$1.1 million per key for the 268-room set of serviced flats at 6 Shenton Means in Singapore’s downtown core.

On the similar time, a separate three way partnership backed by the 2 firms paid S$1.9 million for a resort license and working enterprise related to the asset.

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Two months earlier than that deal on Shenton Means, a consortium involving Datapulse Expertise and a capital associate recognized on a inventory alternate submitting as PAM Holdings I (BVI) Ltd bought the Bay Resort Singapore for S$235 million.

The consortium paid Fiesta Growth Pte Ltd S$736,700 per key for the 319-room resort, which is situated reverse the Vivocity complicated close to the southern tip of Singapore and is presently operated because the Travelodge Harbourfront.

“The Singapore resort market has historically been tightly held, nonetheless, we’re seeing elevated liquidity available in the market, pushed by the robust weight of worldwide capital looking for alternatives in perceived protected haven locations,” mentioned JLL Inns & Hospitality Asia’s head of funding gross sales, Nihat Ercan.

In July, Allianz acquired a 60 p.c stake within the Duo Tower and Duo Galleria, whereas Gaw Capital acquired the remaining 40 p.c on behalf of a sovereign wealth fund.

The consortium paid the equal of S$2,590 per sq. foot for the mixed complicated, which includes 557,972 sq. ft (51,837 sq. metres) of grade A places of work and 56,000 sq. ft of retail area.