You are here

CDLHT's hotel deals get nod of approval from securityholders

CDL Hospitality Trusts' (CDLHT) stapled securityholders have voted in favour of its two proposed hotel deals.

At an extraordinary general meeting on Thursday, securityholders approved the proposed redevelopment of Novotel Singapore Clarke Quay, with 99.9 per cent of total votes in favour.

The resolution on the potential acquisition of W Singapore in Sentosa Cove was approved as well, with 99.28 per cent of total votes in favour.

On Jan 3, independent financial adviser (IFA) Deloitte & Touche Corporate Finance said that the two proposed transactions are on normal commercial terms.

They are "not prejudicial" to the interests of CDL Hospitality Real Estate Investment Trust (H-Reit), CDL Hospitality Business Trust (HBT) or minority securityholders, said the IFA, recommending that securityholders vote in favour of both transactions.

CDLHT is a stapled group comprising H-Reit and HBT.

In November, CDLHT said it intends to sell its entire stake in the 403-key Novotel Singapore Clarke Quay along River Valley Road for S$375.9 million to CapitaLand and City Developments Limited (CDL). The transaction is part of the consortium's redevelopment of the Liang Court site.

CDLHT said separately in November that it is proposing to buy the 240-room W Singapore luxury hotel for S$324 million from Cityview Place Holdings, a wholly-owned unit of CDL.

Stapled securities of CDLHT closed flat at S$1.64 on Thursday.