Ibis Novena sold for nearly S$170m

Singapore

PROPERTY funds managed by Alpha Investment Partners have sold the freehold Ibis Novena for nearly S$170 million, The Business Times understands.

The price works out to around S$700,000 per room and a net yield of about 3 per cent. Alpha has made a profit from the deal; it paid S$150 million for the 241-room hotel in 2013.

Accor will continue to manage the property, which is at the corner of Irrawaddy and Balestier roads.

BT understands that the buyer is an entity linked to Mohammed Saiful Alam, who controls Bangaldeshi conglomerate S Alam Group, which is involved in a range of activities including agrobusiness, consumer products, cement, steel, power, energy, transportation, shipping, manufacturing, trading and property.

When contacted by BT, Galven Tan, CBRE Singapore executive director of capital markets, confirmed that he brokered the deal but declined to comment, citing confidentiality.

This would be Mr Alam's third hotel acquisition in Singapore. In 2014, he bought the-then Hotel Grand Chancellor on Belilios Road in Little India for S$248 million. It has since been rebranded to Hilton Garden Inn Singapore Serangoon.

He also owns the Holiday Inn Express Singapore Serangoon in Jalan Besar which he bought more than a year ago, BT understands.

Besides the three hotels, he also picked up all the retail space at Centrium Square in 2016 for S$135 million or S$4,967 per square foot based on the freehold strata area of 27,179 sq ft .

This space is on the first two levels of the development, which is being built along Serangoon Road and is next to Mustafa Centre.

Ibis Novena, Mr Alam's latest Singapore acquisition, was developed by Cockpit International group, controlled by the family of the late Teo Lay Swee. The hotel opened its doors in April 2011 and a few months later, Cockpit International sold it for S$118 million or nearly S$490,000 per room to the Kum family.

Less than two years later, the Kums, of M&L Hospitality fame, sold the hotel to Alpha.

Separately along Serangoon Road, The Claremont hotel is in the early stages of a sale, BT understands.

Market watchers expect the price to be below S$70 million. An entity linked to Satinder Garcha is buying the eight-storey freehold property, which has 90 rooms.

Located near the junction of Owen Road, the hotel is a stone's throw from Farrer Park MRT Station and opposite Centrium Square.

JLL marketed The Claremont through an expression of interest exercise that closed on April 18 this year. When contacted, it declined to comment.

Entities linked to Mr Garcha currently own three hotels in Singapore: the Vagabond Club in Syed Alwi Road, Six Senses Duxton and Six Senses Maxwell.