Far East H-REIT to acquire Oasia Hotel Downtown for $210 mil
By Timothy Tay
/ EdgeProp Singapore |
Far East Hospitality Real Estate Investment Trust (Far East H-REIT) has announced its intention to acquire the 65-year leasehold Oasia Hotel Downtown for $210 million. The seller is Far East SOHO, a member of the Far East Organization group of companies. The purchase consideration was negotiated on a willing buyer-willing seller basis. The amount is at the lower end of two independent valuations by Knight Frank and Savills Valuation, says Far East H-REIT.
The 314-room Oasia Hotel is part of a 27-storey hotel and office development in downtown Tanjong Pagar. It is within walking distance to the Tanjong Pagar MRT station. Oasia commenced operations in 2016 and has a roof terrace, infinity and rooftop pools, a club lounge, and meeting rooms. Upon completion of the acquisition, the property will be leased to Far East SOHO for an initial term for 20 years.
The acquisition demonstrates Far East H-REIT commitment to increase potential opportunities for future income and capital growth through acquisitions of quality hospitality assets, says Gerald Lee, chief executive officer of Far East H-REIT. It will also diversify the income stream, create a better balance between mid-tier and upscale assets, and add a property in a locale where the trust did not have a presence, Lee says.
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