CDLHT unit enters new 10-year lease agreement for Maldives resort

A UNIT under CDL Hospitality Trusts (CDLHT) has inked a new 10-year lease agreement with a unit of Banyan Tree Holdings for the Angsana Velavaru resort in the Maldives.

The existing lease in place expires on Jan 31, 2023, CDLHT said in a Wednesday (Dec 14) bourse filing. The rental formula and management fee terms under the new lease are the same as the existing one entered into in January 2013.

Under the agreement, the lessor will be entitled to receive rent payments equivalent to the resort’s gross operating profit less management fees retained by the lessee, subject to a minimum rent. The lessee will pay a top-up amount to make up for any shortfall in rent below the minimum rent for each year.

“The lease structure provides downside protection for CDLHT and incentivises the lessee to maximise gross operating profit while allowing CDLHT to enjoy the potential upside,” the trust said in its filing.

Stapled securities of CDLHT closed at S$1.25 on Wednesday, up 0.8 per cent or S$0.01.