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Far East Hospitality Trust (Far East H-Trust) completed the acquisition of the four-star Oasia Hotel Downtown (pictured) at 100 Peck Seah Street on Monday (2 Apr), according to an SGX filing.
Known for its red exterior clad in lush greenery, the 65-year leasehold property features 314 well-equipped guest rooms, a 24-hour gym, meeting rooms, two restaurants and a bar, among other facilities.
In January, the trust signed an agreement with Far East Soho to buy the hotel for $210 million, excluding stamp duty, professional and other fees and expenses totalling $8.4 million. These were funded with loans and proceeds from Far East H-Trust’s distribution reinvestment plan last year.
“The acquisition of Oasia Hotel Downtown is in line with our strategy to grow the REIT and enhance the total return to our stapled security holders,” said Gerald Lee, CEO of FEO Hospitality Asset Management.
“The property allows us to diversify into a new locale, in the vibrant Tanjong Pagar area of the central business district, and to tap into the upscale corporate segment. As an award-winning hotel, it will also help to better position our REIT to benefit from the growth and development of the Singapore tourism industry over the longer term.”
With the completion of the deal, Far East H-REIT’s portfolio now consists of four serviced residences and nine hotels in Singapore, plus a 30 percent stake in a joint venture with Far East Organization Centre for a Sentosa hotel project.
The trust, which comprises Far East Hospitality Real Estate Investment Trust and Far East Hospitality Business Trust, now has 3,143 hotel rooms and serviced residence units with a combined value of $2.6 billion.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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