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The highest total price achieved for a standalone hotel transaction within the city-state, the $475 million price works out to $1.39 million per key.
M+S Pte Ltd, the national joint venture between Singapore and Malaysia, is selling Duo mixed-use project’s hotel component to Hoi Hup Realty for $475 million, reported the Business Times.
This comes after it has agreed to sell its 100 percent stake in its fully-owned unit Ophir-Rochor Hotel Pte Ltd, which is also the owner and developer of Andaz Singapore.
The highest total price achieved for a standalone hotel transaction within the city-state, the $475 million price works out to $1.39 million per key.
“We are attracted to the rarity of this high-quality hotel and its historic significance, being one of M+S’ landmark projects. We are especially excited by its strategic location, with Andaz occupying a key node in the transformative Beach Road and Ophir-Rochor Corridor,” said Hoi Hup chairman Wong Swee Chun.
The 342-room luxury hotel opened its doors to the public in late 2017 with Hyatt Hotel Corporation managing it.
Occupying the top 15 floors of the Duo Tower, the five-star Andaz features an observation deck and rooftop venue, with the meeting rooms and hotel ballrooms found on Level 3.
“The proposed transaction will enable us to maximise returns to our shareholders, while handing over the reins to an established and exciting developer in Hoi Hup to take the asset forward,” said M+S chief executive Kemmy Tan.
Malaysian sovereign wealth fund Khazanah Nasional holds a 60 percent stake in M+S, while the remaining 40 percent is owned by Singapore investment firm Temasek Holdings.
The 39-storey Duo Tower forms part of the two-tower Duo development on Beach Road.
Apart from Andaz, Duo Tower features a 56,000 sq ft retail component on Level 1 and Basement 3 as well as 570,000 sq ft of Grade A commercial space at Levels 4 to 23.
The other 49-storey tower, Duo Residences, houses 660 apartment units
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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