First Sponsor Group has acquired a German hotel while Mapletree Logistics Trust and Heeton Estate have disposed of properties.
First Sponsor Group acquires Le Méridien Frankfurt in Germany
First Sponsor Group Limited is entering the German market in partnership by joining City Developments Limited (CDL) and Tai Tak Estates Sdn Bhd in acquiring the Le Méridien Frankfurt Hotel for an estimated EUR 85 million ($99.8 million).
Through a joint venture (JV) partnership with CDL and Tai Tak, it will acquire the hotel in a transaction expected to be completed in late December 2017 or early January 2018.
Kwek Eik Sheng, CDL chief strategy officer and head of Asset Management, said that the demand for hotels in Frankfurt will grow thanks to Brexit, as businesses including banks are moving their operations and activities there. “At the same time, it will also enable CDL to enhance our recurring income stream and enlarge our geographical footprint for strategic diversification,” he added.
The Le Méridien Frankfurt Hotel is a freehold property leased to MHP Parkhotel GmbH with a lease expiry date of 31 May, 2040. It is operated under the Le Méridien brand on the basis of a franchise granted by Starwood. and is located near the main train station in the Frankfurt district of Bahnhofsviertel – the city centre of Frankfurt – with an aggregate area of about 4405 square metres.
Mapletree Logistics Trust sells Senai-UPS
The manager of Mapletree Logistics Trust (MLT), via a special purpose entity, has agreed to sell Senai-UPS in Malaysia to VS Industry for a consideration of MYR 28 million.
The property located within the Senai Industrial Estate in Johor is a single-storey warehouse with an annexed two-storey office building with a gross floor area of 11,494 square metres.
The property was acquired in 2007 for MYR25.5 million. It is currently valued at MYR20.5 million as at end October. Its sales price represents a 37 per cent premium over its last valuation.
The divestment is part of efforts by the REIT manager to improve the portfolio quality, particularly given the property’s low yield and limited future income growth.
“Capital released from the divestment will provide MLT with greater financial flexibility to pursue other investments of modern and higher yielding assets. In the interim, it will be used for MLT’s working capital,” said Mapletree Logistics Trust Management. It will receive a 0.5 per cent divestment fee from the sale of the property.
Heeton Estate to sell Woodgrove in $41.2m deal
Heeton Estate, a wholly-owned subsidiary of Heeton Holdings, is selling a development at 30 Woodlands Avenue 1, The Woodgrove, for S$55.85 million ($41.2 million) to an undisclosed purchaser registered in Singapore.
According to a filing, Heeton expects to book S$22 million in net gain from the transaction. This will fund the acquisition of potential development property and/or hospitality assets in the future.
The property, valued by Colliers International at $56 million, has a strata floor area of 5144 square metres, with an unexpired lease term of approximately 78 years based on its leasehold term of 99 years commencing from June 26, 1996.
Heeton states the sale was motivated to realise its investment in the asset, which would have to undergo enhancement in order to compete with larger retail malls in the area due to the building’s age.