Featured in this Asia Pacific Hospitality Newsletter - Week Ending 07 May 2004
Cheung Kong to develop tourist complex
HPL revives plans to redevelop Hilton hotel in Singapore
Phuket Pavilions Private Villa launched
Ascott expands to US market
Shangri-La plans new multi purpose complex in Shanghai
Singapore tycoon to refinance Nauru’s property assets
Temasek Holdings makes offer to buy United Overseas Land
Fraser Serviced Residences expands in Paris


Cheung Kong to develop tourist complex Return to Headlines
According to The Standard, Property developer Cheung Kong (Holdings) will invest HK$1 billion to convert the former Marine Police headquarters in Hong Kong, into a heritage tourist complex. The complex, located in Tsim Sha Tsui, will comprise a themed restaurant, hotel and shopping centre. The redevelopment will convert a 118-year-old Victorian colonial main building into an 80-room hotel. The entire project, covering a gross floor area of 132,000 square feet, is scheduled to be completed by 2007. The HK$1 billion investment includes the tender price of HK$352.8 million paid for the 50-year land lease.

HPL revives plans to redevelop Hilton hotel in Singapore Return to Headlines
Singapore-based Hotel Properties Ltd (HPL) is considering redeveloping the Hilton hotel and the adjacent Forum shopping centre on Singapore Orchard Road into an integrated mega hotel and retail complex. The plan is expected to cost over S$500 million, including government incentives, contractual obligations between HPL and the Hilton chain and agreement with other shareholders of Forum, namely Ayala International and Grosvenor Estate. If approved, the integrated development will provide a built-in area of close to 800,000 sq ft including hotel space.

Phuket Pavilions Private Villa launched Return to Headlines
Phuket Pavillions Private Villas has broken ground on a site overlooking Bang Tao Bay. A boutique 30 villa contemporary Balinese themed resort, each having individual swimming pools with a total project cost of US$6.5 million is slated to open in mid 2005. The property is being developed under a group headed by Hong Kong entrepreneur Gordon Oldham who also owns the Bali Pavilions in Sanur and has plans to open further Pavilions in Koh Samui and Krabi.

Ascott expands to US market Return to Headlines
Ascott Group made its first foray into the US market through an alliance with the local Equity Residential. Equity, the largest publicly traded apartment company in the US, manages over 200,000 apartments, including serviced apartments in over 100 cities across the country. The partnership, said Ascott, involves the sharing of major multinational client accounts and global sales networks, producing joint marketing collaterals, holdings combined promotional activities and website links. This tie-up is likely to enhance Ascott’s customer base, given that 22% of its key corporate clients are based in the US.

Shangri-La plans new multi purpose complex in Shanghai Return to Headlines
Kerry Properties Ltd and Shangri-La Asia Ltd plans to invest a combined US$600 million in a hotel, office, residential and retail complex in Shanghai. Kerry Properties Ltd and Shangri-La Asia Ltd, which are controlled by Malaysian tycoon Robert Kuok, will own respectively 50.5% and 48.5% of the project. A local partner will hold the remaining 1% stake. Construction is expected to start next year with a proposed completion date in 2009. The project is located in Shanghai’s Jingan commercial district on three adjoining sites and linked to the Shanghai Kerry Centre. Kerry and Shangri-La each own one plot of the undeveloped land, and will buy the third site from an independent owner.

Singapore tycoon to refinance Nauru’s property assets Return to Headlines
Mr. Hiranandani has recently taken over the US$172 million refinancing of Nauru’s property assets, including such properties as the Savoy Hotel in Melbourne. The arrangement will see the tycoon fully managing Nauru’s property investments, with profits split down the middle. He will repay the A$239 million that Nauru owes to the financial arm of US conglomerate General Electric.

Temasek Holdings makes offer to buy United Overseas Land Return to Headlines
The Singapore government investment arm, Temasek Holdings Ptd Ltd, offered to buy United Overseas Bank’s (UOB) 49.8% stake in United Overseas Land (UOL) for S$2.06 in cash for each UOL share that UOB owns. Temasek has also offered S$0.81 for each warrant held by UOB. The offer, which closes May 11, values UOB’s stake in UOL at S$714.9 million. UOL holds about S$1.6 billion worth of investment properties including a portfolio of hotels with a book value of approximately S$700 million. The hotels, located in Asia and Australia, are held through UOL 75.8% owned listed subsidiary Hotel Plaza. If Temasek Holdings ends up controlling UOL, it could possibly divest its substantial property portfolio through Real Estate Investment Trusts (Reits) including Singapore’s first hotel Reit reports the Business Times.

Fraser Serviced Residences expands in Paris Return to Headlines
Fraser Serviced Residences, a subsidiary of Centrepoint Properties Pte Ltd, signed a contract to manage a serviced residence in La Defense, Paris’ business district. The 14-storey Fraser Suites, Paris La Defense comprises 134 units including studios, one-bedroom and two-bedroom apartments.

Absolute Share Price Performance, as at 07 May 2004