KUALA LUMPUR: M+S Pte Ltd, a 60:40 joint venture between Khazanah Nasional Bhd and Singapore’s Temasek, is selling its 100 per cent stake in Ophir-Rochor Hotel Pte Ltd (ORH) to Hoi Hup Realty Pte Ltd for S$475 million.
The deal marks the highest price ever achieved for a standalone hotel transaction in Singapore, M+S said in a statement today.
“In Asia, it represents the third highest price achieved this year,” the company said, adding that the sale was subject to customary closing conditions.
ORH is the developer and owner of Andaz Singapore, a five-star luxury lifestyle hotel.
The hotel, operated by Hyatt Hotels Corp, opened its doors in 2017 and is the first Andaz hotel in Southeast Asia.
The 342-room hotel occupies the top 15 floors of Duo Tower and features a wide variety of dining options, a rooftop venue and observation deck and premium meeting facilities.
It is part of the Duo mixed-use development and is situated in the Ophir-Rochor corridor in Singapore, next to the cultural neighbourhood of Kampong Glam with direct connectivity to Bugis MRT Station.
The Duo development sits on a site with a 99-year leasehold tenure, starting from July 1, 2011.
“We are proud to have built up Duo into the business and lifestyle institution it is today. Andaz Singapore is an integral part of Duo’s success.
“In just two years of operations, Andaz Singapore has become the choice destination in Bugis for locals and travellers alike,” M+S chief executive officer Kemmy Tan said.
“The record price of S$475 million is testament to the quality of Andaz Singapore and the unparalleled experiences it offers to its guests,” she added.
Duo Tower is part of the two-tower mixed-use Duo development on Beach Road by M+S.
Aside from Andaz, Duo Tower also comprises 570,000 sq ft of prime Grade-A commercial space on Levels 4 to 23, and a 56,000 sq ft retail component, Duo Galleria, on Level 1 and Basement 3. The other tower, Duo Residences, has 49 storeys and houses 660 units.
Three months ago, M+S confirmed it was selling Duo’s office and retail areas for S$1.575 billion to Allianz Real Estate and Hong Kong private equity firm Gaw Capital Partners.
Hoi Hup Realty has over 36 years’ experience in the real estate development industry.
Chairman Wong Swee Chun said Hoi Hup Realty was attracted to the rarity of the high-quality luxury hotel offering as well as its historic significance, being one of the landmark projects by M+S.
“We are especially excited by the strategic location of the hotel, with Andaz Singapore occupying a key node in the transformative Beach Road and Ophir-Rochor Corridor.
“We are extremely confident that Andaz will fulfil its potential to become one of the leading luxury hotels in Singapore,” Wong added.