In a few realty related deals in Singapore, Far East Hospitality REIT is to acquire Oasia Hotel Downtown while SingHaiyi Group has purchased Park West condominium.
Far East Hospitality REIT to acquire Oasia Hotel Downtown
Far East Hospitality REIT has proposed to acquire Oasia Hotel Downtown from its sponsor, Far East SOHO, for S$210 million ($158.1 million). The proposed deal will be funded by debt and proceeds from Far East H-REIT’s distribution reinvestment plan.
The deal is subject to shareholder approval.
Far East SOHO, a member of the Far East Organization group of companies, is selling the 65-year leasehold estate in Oasia Hotel Downtown, a 314-room upscale hotel in Tanjong Pagar, under its right of first refusal agreement with Far East H-REIT.
According to the company, the acquisition will be accretive to the distribution per stapled security (DPS) of Far East H-Trust for the nine-month period ended September 2017.
SingHaiyi Group to acquire Park West condominium
SingHaiyi Group’s joint venture (JV) firm, SingHaiyi Gold, is acquiring Park West condominium along Jalan Lempeng in Clementi at a price of $840.9 million ($633.2 million). SingHaiyi Gold is a 50-50 joint venture between SingHaiyi Land and Haiyi Wealth.
SingHaiyi Land is a wholly-owned subsidiary of SingHaiyi Group, while Haiyi Wealth is an entity controlled by Gordon Tang and his wife Celine, the controlling shareholders and directors of SingHaiyi Group.
The condominium owners accepted the bid – its third since previous attempts in 2007 and 2011 – and will see SingHaiyi Gold apply to the Singapore Land Authority (SLA) for the grant of a fresh 99-year lease for the property and to lift the title restrictions in the state lease.
The 36-year-old property sits on a land area of approximately 58,867 sqm with a plot ratio of 2.1. Additionally, an estimated differential premium of S$144.6 million is payable to redevelop the site to a maximum permissible gross floor area of about 135,982.8 sqm.
According to SingHaiyi, the acquisition will be funded via internal resources and bank borrowings.