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The hotel was originally completed in 1986 but underwent a €17.6 million renovation between 2012 and 2016. It now comes with 337 guest rooms, including 24 suites, plus a comprehensive array of facilities like a spa, F&B outlets and conference rooms. (Photo: CDL Hospitality Trusts)
CDL Hospitality Trusts (CDLHT) has acquired a 94.5 percent stake in Pullman Hotel Munich along with its office and retail components for €100.6 million (approx. S$156.3 million), revealed an SGX filing on Tuesday (27 June).
This acquisition of the four-star hotel marks CDLHT’s first investment in Germany, and it will be initially fully funded by debt financing.
The hotel, standing on two freehold land parcels, was originally completed in 1986 but underwent a €17.6 million renovation between 2012 and 2016. It now comes with 337 guest rooms, including 24 suites, plus a comprehensive array of facilities like a spa, F&B outlets and conference rooms.
It is strategically situated next to the commercial district of Parkstadt Schwabing, which houses many multinational firms like Amazon and GE Healthcare and the German headquarters of IBM, Microsoft, Fujitsu and Munich Re. It is also close to many of the city’s popular tourist destinations such as the Allianz Arena, English Garden and BMW’s HQ.
“The acquisition of Pullman Hotel Munich facilitates CDLHT with a strategic entry into Germany and allows us to penetrate a highly sought-after hospitality market,” said Vincent Yeo, Chief Executive Officer of CDLHT’s managers.
Upon completion of the deal by around 18 July 2017, the hotel will continue to operate under the Pullman brand pursuant to CDLHT’s existing franchise deal with AccorHotels. As for the secondary spaces, they are presently leased to four retail and seven office tenants.
Meanwhile, CDLHT launched a fully underwritten and renounceable rights issue on Tuesday to raise gross proceeds of around S$255.4 million.
Of this, about S$250 million will be used to partially repay existing loans, excluding the borrowings for purchase of the Pullman Hotel Munich and The Lowry Hotel in the UK, which was bought in 4 May 2017. The remaining S$4.4 million will cover expenses related to the rights issuance, while S$1 million will be utilised for capital expenditure and working capital.
“Once our acquisition in Munich and equity fund raising are completed, CDLHT’s portfolio will see the addition of two new European properties in 2017 and our portfolio’s total valuation will increase from S$2.4 billion at end 2016 to S$2.7 billion,” Yeo added.
This article was edited by Denise Djong.
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