In a major cross-border acquisition from a Thailand company, Singha Estate, a listed property firm under the Singha empire, has formed a joint venture with FICO Corporation to buy the British Jupiter Hotels portfolio of 26 Mercure-brand hotels for 160 million pounds ($243 million) from Patron Capital and Royal Bank of Scotland.
Singha Estate reported to the stock exchange of Thailand yesterday that its wholly-owned subsidiary S Hotels and Resorts (UK) has acquired a 50-per-cent stake in a new joint venture, called FS JV Co, with registered capital of one million pound ($1.5 million) on October 1.
FICO, Thailand-based diversified group, has invested in various businesses such as hospitality, real estate, luxury retail, manufacturing and media. However, this acquisition marks the first major property deal of Thai investors in Europe.
In addition, it stated that FS Senior, a wholly-owned subsidiary of FS JV, has entered into agreements with Patron Jupiter Holdings and West Register Hotels (Holdings) for acquiring the entire stake in Jupiter Hotels Holdings.
For this deal, FICO signed a memorandum of understanding (MoU) to form a joint venture with Thai Industrial and Engineering Service PCL (T) in the beginning of September. However, a week later, Thai Industrial informed the stock market that the MoU was terminated by FICO, which refused to extend the period (for Thai Industrial) to run the documents for this acquisition.