SINGAPORE: CDL Hospitality Trust (CDLHT) has announced its plan to acquire Hotel Indigo Exeter and two retail units in a deal worth GBP19.4 million (S$33.2 million).
The acquisition will be fully funded through debt, according to a press release on Oct 15. The agreement is with Hotel Exe Limited, Plaza Properties (Holdings), and Plaza Retail (Holdings).
The Edge Singapore reported that CBRE Limited, acting as an independent valuer, assessed the property at GBP19.5 million based on its market value as of Sept 30, matching the agreed purchase price.
The valuation includes GBP15.5 million for the hotel and GBP4.0 million for the retail spaces. The property includes a 104-room hotel with spa and gym facilities, along with two retail spaces.
It is located at the entrance of the Princesshay Shopping Centre in Exeter, a prime spot close to the commercial district, transport links, and popular attractions.
According to the release, CDLHT expects the acquisition to increase its earnings once stabilised. Vincent Yeo, CEO of CDLHT’s managers, expressed confidence in the deal, calling it a “high-quality asset.”
He said, “We are delighted to acquire a high-quality asset with brand-new interiors in the best location in the heart of Exeter.
This continues our strategy to pursue accretive acquisitions that augment our income streams. This acquisition also increases our exposure to the burgeoning lifestyle hotel market.”
“We believe our Stapled Security holders will benefit from this opportune acquisition, especially at a point when the interest rate cycle is expected to turn,” he added. /TISG
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