Malaysia’s Khazanah Nasional Bhd, which has a 60% stake in Singapore-based M+5 Pte Ltd, is on a selling spree.
In a statement yesterday, M+5 said it has agreed to sell a five-star hotel for S$475 million, which observers say is a record price for a standalone hotel in the island republic.
M+S Pte Ltd, is a 60:40 joint venture between Khazanah Nasional Bhd and Temasek Holdings Pte Ltd.
M+S said it is selling the wholly owned Ophir-Rochor Hotel Pte Ltd to Hoi Hup Realty Pte Ltd. Ophir-Rochor Hotel is the developer and owner of the five-star luxury property, Andaz Singapore.
Andaz Singapore — a five-star luxury hotel by Hyatt opened its doors in 2017 and is the first Andaz hotel in Southeast Asia.
“Having assessed such a strong offer, we have determined that the proposed transaction will allow us to maximize returns to our shareholders,” M+S chief executive officer Kemmy Tan said in the statement.
“M+S will continue to own and manage our assets at Marina One to the optimal level for our shareholders,” Tan said.
Wong Swee Chun, chairman of Hoi Hup Realty, said the company had been “attracted to the rarity of this high-quality luxury hotel offering and its historic significance.
M+S was set up in 2011 to develop two integrated developments in central Singapore, namely, Marina One and Duo.
The Andaz Singapore is a 342-room hotel that occupies the top 15 floors of the Duo Tower, located in the Bugis district near Singapore’s city center.
The Malaysian sovereign wealth fund in July sold the office and retail portion of its Singaporean property investment the Duo project, for RM4.7 billion. Khazanah is the majority holder of the asset via its 60%-owned joint venture company, M+S Pte Ltd.
The opposition in Malaysia criticised the Pakatan Harapan government of Prime Minister Tun Dr Mahathir Mohamad of selling Khazanah’s assets for losses and for turning the sovereign fund into a political tool.
They accuse the government of failing to turn the economy around, pushing Khazanah on a selling spree to dispose of non-critical assets.
Dr Mahathir Mohamad, who is also Khazanah chairman, said the government stands to benefit from the sovereign wealth fund selling off its stakes and assets which do not form part of its core businesses.
He also said the fund had strayed outside its core businesses and invested in too many things under the Najib Razak regime. -/TISG
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