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CDL Hospitality Trusts unit renews lease on New Zealand hotel
A UNIT of mainboard-listed CDL Hospitality Trusts (CDLHT) has renewed its lease on a New Zealand hotel for another three years with the lessee, Hospitality Services.
CDLHT – a stapled group comprising CDL Hospitality Real Estate Investment Trust (CDL H-Reit) and CDL Hospitality Business Trust – said in a bourse filing on Thursday morning that CDL H-Reit’s wholly owned subsidiary, CDLHT (BVI) One, as lessor, renewed the deed of lease on Grand Millennium Auckland with the lessee.
The lessee is wholly owned by New Zealand-listed Millennium & Copthorne Hotels New Zealand.
The lease started on Sept 7, 2016 with a three-year term. It can be renewed for two further three-year terms, subject to mutual agreement. With this renewal, the second three-year term of the lease will commence on Sept 7, 2019 on the same terms.
Grand Millennium Auckland is the largest hotel in New Zealand, with 452 rooms located in the gateway city of Auckland.
The lease renewal constitutes an interested-person transaction because Millennium & Copthorne Hotels New Zealand is a subsidiary of Millennium & Copthorne Hotels, which is in turn a subsidiary of City Developments Limited (CDL). CDL is a controlling holder of stapled securities in CDLHT.
The value of the transaction does not exceed 3 per cent of CDLHT’s latest audited net tangible assets, when aggregated with the value of all other interested-person transactions entered into with the same interested-person group in the same financial year.
Stapled securities of CDLHT last closed on Tuesday at S$1.61, up two Singapore cents from Monday’s close.