KUALA LUMPUR — Oct. 8, 2019: Khazanah Nasional’s 60 per cent-owned subsidiary M+S Pte. Ltd. is selling its five-star hotel Andaz Singapore to Hoi Hup Realty Pte. Ltd. for S$475 million (about RM1.44 billion) — the highest price ever for a standalone hotel transaction in Singapore.
M+S has agreed to sell wholly-owned unit Ophir-Rochor Hotel Pte. Ltd. (ORH), the developer and owner of the 342-room hotel that occupies the top 15 floors of Duo Tower, to Hoi Hup at S$1.39 million per key.
The sale represents the third-highest price achieved this year in Asia.
“The record price of S$475 million is a testament to the quality of Andaz Singapore and the unparalleled experiences it offers to its guests. It also reflects the potential for growth of the hotel in tandem with the continued evolution of the Bugis district as a vibrant extension of the existing central business district,” M+S chief executive officer Kemmy Tan said in a statement today.
“Having assessed such a strong offer, we have determined that the proposed transaction will allow us to maximise returns to our shareholders while handing over the reins to a very established and exciting developer in Hoi Hup to take the asset forward,” she said.
M+S, set up by Khazanah and Temasek Holdings in June 2011 to develop Marina One and Duo in central Singapore, will continue to own and manage assets at Marina One to the optimal level for shareholders, said Tan.
The ORH sale is subject to customary closing conditions and JLL is the appointed advisor for the transaction.
Andaz Singapore, managed by Hyatt Hotels Corporation, opened in 2017 as the first Andaz hotel in Southeast Asia.
Part of the mixed-use Duo, the hotel features a wide variety of dining options, a rooftop venue and observation deck and premium meeting facilities.
It is situated in the Ophir-Rochor corridor in Singapore, next to the cultural neighbourhood of Kampong Glam, and has direct connectivity to Bugis MRT Station.
Hoi Hup Realty is an established property developer with over 36 years’ experience in the real estate development industry.
Wong Swee Chun, chairman of Hoi Hup Realty, said: “We are attracted to the rarity of this high-quality luxury hotel offering as well as its historic significance, being one of the landmark projects by M+S. We are especially excited by the strategic location of the hotel, with Andaz Singapore occupying a key node in the transformative Beach Road and Ophir-Rochor Corridor.
“We are extremely confident that Andaz will fulfil its potential to become one of the leading luxury hotels in Singapore.” — Bernama