A Singaporean consortium led by Mainboard-listed developer Heeton Holdings has acquired Crowne Plaza London Kensington, a freehold property located on one of the main arterial routes into Central London, for £84.3 million ($110.3 million).
In a disclosure, Heeton said, it has teamed up with Mainboard-listed contractor KSH Holdings and privately held construction firm Ho Lee Group to acquire Crowne Plaza London Kensington via a share sale and purchase agreement with LC London.
LC London, a company incorporated in England and Wales, is a hotel investment company whose primary asset is the Crowne Plaza London Kensington hotel.
With the completed acquisition, Heeton now holds 60 per cent stake in the hotel while KSH and Ho Lee each hold a 20-per cent stake.
Refurbished in 2015, the hotel sits on nearly one acre of land with substantial frontage onto Cromwell Road. It has 163 en-suite bedrooms, a restaurant, a bar, a fully equipped gym, as well as conference and events facilities.
The hotel is housed behind a historic Georgian facade and is within a walking distance of many top tourist attractions, historical landmarks, and luxury shopping districts.
The acquisition enlarges Heeton’s portfolio to now include 12 operating hotels, with eight hotels in the United Kingdom, two in Japan, and two in Thailand. In the UK, seven hotels are self-managed, while the 8th – Hotel Indigo Glasgow – is externally managed. The Japanese and Thai hotels are all managed by third parties.
“This acquisition reaffirms Heeton’s intention to be a strategic player in the international hospitality sector,” said Heeton’s chief executive officer Eric Teng.
Established in 1976 and listed on Singapore Stock Exchange in September 2003, Heeton Holdings is a real estate company focused on property development, investment, and management. Since 2011, Heeton has further diversified its real estate portfolio into the hospitality asset class.
Heeton said, the acquisition is not expected to have significant impact on the net tangible assets and earnings per share of the group for the current financial year ending 31 December 2019.
KSH executive chairman and managing director Choo Chee Onn said, the acquisition also adds to the company’s portfolio of 11 investments. He said, KSH will continue to be on the lookout for other “attractive opportunities” to grow its portfolio.
In 2016, Heeton was also part of a consortium of Singapore-listed companies that acquired Holiday Inn Express, a hotel property in Manchester. The hotel, a 12-storey building with 147 bedrooms, is self-managed by Heeton and runs under a franchise arrangement with the InterContinental Hotels Group under the brand of Holiday Inn Express.