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Ascendas Hospitality Trust completes acquisition of hotel in South Korea, master lease agreement inked
ASCENDAS Korea Hospitality No 1 Professional Investors Private Real Estate Investment (Ascendas Korea Hospitality) has entered into a 20-year master lease agreement with Sotetsu International Korea Co in relation to its hotel in South Korea.
Last month, Ascendas Hospitality Trust (A-HTRUST) announced that it had - through Ascendas Hospitality Business Trust - entered into a sale and purchase agreement with KY-Development Co to acquire a majority stake in KY-Heritage Hotel Dongdaemun for 72.1 billion won. The acquisition of the hotel has been completed, and the hotel will be renamed The Splaisir Seoul Dongdaemun.
Ascendas Korea Hospitality is owned by Ascendas Hospitality Business Trust (98.7 per cent) and Ascendas (Korea) Pte Ltd (1.3 per cent), which is a wholly owned subsidiary of Ascendas Land International.
The rent payable to Ascendas under the master lease agreement will be either a base rent or a proportion of the room revenue based on a pre-determined formula, whichever is higher. The master lease commences from July 1.