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Far East Hospitality Trust (H-Trust) announced earlier this week that it has entered into a joint venture with sponsor Far East Organization (FEO) to develop an 850-room hotel project in Sentosa worth S$443.8 million, marking the trust’s first investment in Sentosa.
The trust will hold a 30 percent stake in the project.
Gerald Lee, Chief Executive Officer of FEO Hospitality Asset Management, manager of Far East H-REIT, said: “This presents an opportunity for us to invest in two quality hotels which are conveniently located in a leading leisure and lifestyle destination in Singapore at an attractive cost,” adding that the trust’s participation in the project will also allow them to leverage on FEO’s strong development capability as a market leader in private real estate development across multiple asset classes.
Integrating two distinctive hotels – Outpost Hotel Sentosa and Village Hotel Sentosa, the 60-year leasehold development sits on a heritage hotel site at Artillery Avenue, which was awarded to its sponsor in March this year.
Far East H-Trust’s stake on the project will be fully-funded by debt, and the hotel is expected to be completed in 2018.
Image: Artist’s impression of Outpost Hotel Sentosa and Village Hotel Sentosa (Source: FEO)
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this and other stories, email nikki@propertyguru.com.sg
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