You are here
Far East H-Reit to buy Oasia Hotel Downtown in Tanjong Pagar for S$210m
FAR EAST Hospitality Real Estate Investment Trust (Reit), which trades as part of the stapled Far East Hospitality Trust, is buying the 314-room Oasia Hotel Downtown in the Tanjong Pagar district for S$210 million in cash before fees.
The 65-year leasehold property is being sold by Far East Soho, a unit of the Reit's sponsor. The consideration will be funded from debt facilities and reinvestment of distributions.
A further S$15 million worth of stapled securities will be issued to the seller if the net property income of the building is at least S$9.9 million for two straight fiscal years by end-2023.
The 27-storey hotel and ofice building sits along100 Peck Seah Street at the edge of the Shenton Way and Raffles Place financial district. It is within walking distance from the Tanjong Pagar MRT station.
The building's facilities include restaurants and a bar, meeting rooms, a 24-hour gym, a club lounge, infinity and rooftop pools, a skyline pavilion and a roof terrace.
Revenue per available room was S$170 for the nine-month period ended September 2017. The consideration matches an independent valuation by Knight Frank. Another valuation, by Savills, assigned a value of S$226 million to the property.
Far East Hospitality Reit's manager said that the acquisition will allow the trust to benefit from potential growth in leisure demand and tourism in Singapore.