CDL Hospitality Trusts makes first acquisition in Europe; launches S$255.4m rights issue
CDL Hospitality Trusts (CDLHT) announced on Tuesday the acquisition of Pullman Hotel Munich and its office and retail components for about 100 million euros (S$153.8 million), which will be fully funded by debt financing and is accretive with a net property income yield of 5.6 per cent for FY 2016.
This is CDLHT's first acquisition in continental Europe. The hotel, which has a four-star rating, is located in close proximity to major business districts.
In addition, CDLHT has also launched on Tuesday a fully underwritten and renounceable rights issue to raise S$255.4 million. The company said that this is expected to enhance CDLHT's financial flexibility through reduced gearing and increased debt headroom.
The partial repayment of existing higher interest-bearing borrowings will also lower its weighted average cost of debt and further improve its interest coverage ratio, CDLHT said.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
S&P slashes Boeing credit outlook as rating hovers above junk status
Honda to spend US$11 billion on EV strategy in Canada
GlaxoSmithKline sues Pfizer and BioNTech over Covid-19 vaccine technology
Mapletree Industrial Trust Q4 DPU rises 0.9% to S$0.0336
Nasdaq’s profit falls as shaky economy keeps IPO revival elusive
iFast Q1 net profit surges on ePension unit performance