Khazanah unit M+S selling Andaz Singapore hotel for record $344m

Photo from Andaz Singapore's Facebook page.

M+S Pte Ltd, a Singapore-based real estate owner and developer majority-owned by Malaysia’s sovereign wealth fund Khazanah Nasional Bhd, is selling the landmark Andaz Singapore hotel to local developer Hoi Cup Realty Pte Ltd for S$475 million ($344 million), the largest ever single hotel asset transaction in Singapore, according to a statement.

M+S is 60-per cent owned by Khazanah National, with Singapore sovereign wealth fund Temasek Holdings owning the remaining 40 per cent. It was set up in 2011 to develop two integrated developments, Marine One and Duo, in Singapore.

The 342-room Andaz Singapore is the flagship property of Hyatt International in Southeast Asia. Located in the Bugis district near Singapore’s city centre, the hotel occupies the top 15 floors of the Duo Tower.

JLL Hotels & Hospitality Group, the exclusive advisor to M+S, said the deal marks the higher price ever achieved for a standalone hotel transaction in the city-state. In Asia, it represents the third-highest price achieved this year.

“This record sale illustrates the confidence investors have in Singapore and its hotel real estate market,” says Mike Batchelor, Asia CEO of JLL Hotels & Hospitality Group.

Hoi Hup Realty chairman Wong Swee Chu said the company is attracted to the “rarity of this high-quality luxury hotel offering” as well as its historic significance.

Earlier this year, M+S Pte Ltd agreed to sell the commercial component of the development, Duo Tower and Duo Galleria, to a joint venture between Allianz Real Estate and Gaw Capital.

Andaz is the second major hotel transaction in Singapore within the past one month and follows the sale of Oakwood Premier OUE for S$289 million ($209 million) to a joint venture between AMTD Group and Far East Consortium.

JLL said the sale of Andaz is expected to bring total transacted hotel volume in Singapore to a new peak of S$2.5 billion ($1.8 billion) by the end of this year.