8M Real Estate Acquires Ten Shophouses for SGD144 Million

Singapore-based real estate investment company, 8M Real Estate (“8MRE”), has acquired ten shophouses in Singapore along Tanjong Pagar Road, Amoy Street, Gemmill Lane, and Lorong Mambong for SGD144 million. The ten shophouses are distributed across four simultaneous transactions and the biggest of four deals, valued at SGD80 million, is for a row of six four-storey shophouses along Tanjong Pagar Road, with 75 years left on the 99-year leasehold tenure. The six shophouses have a gross floor area of 30,800 square feet, indicating approximately SGD2,600 per square foot. According to the managing director of 8MRE, Ashish Manchharam, the Urban Redevelopment Authority in Singapore has approved the conversion of the upper levels, which are currently vacant, for use as a hotel, and will be operated by 8MRE’s hospitality arm, 8M Collective. Another two four-storey shophouses on Amoy Street, with 71 years left on its lease, were acquired for SGD39 million, at an estimated yield of about 3%, while No.5 Gemmill Lane and No. 48 Lorong Mambong were acquired at SGD16 million and SGD8.3 million respectively.

Hotel Royal Acquires Hotel in Kuala Lumpur for MYR197 Million

Malaysia-based Boustead Hotels & Resorts (“Boustead”) has accepted an offer, from Singapore-based hotel owner and operator, Hotel Royal Limited (“Hotel Royal”), to acquire the four-star hotel, Royale Chulan Bukit Bintang Hotel, at MYR197 million (SGD65 million), indicating MYR492,500 per key. The 400-key property is situated on Jalan Bukit Bintang, Malaysia, an established entertainment and shopping district within Kuala Lumpur’s Golden Triangle, and sits on 3,189 square metres of freehold land. The proposed acquisition will be financed by both internal resources and bank borrowings. Hotel Royal stated that the sale is an opportunity for the group to expand its hotel operations in Kuala Lumpur as the group also owns a 285-key Hotel Royal Kuala Lumpur in Bukit Bintang Area. 

Best Western Acquires WorldHotels

US-based hotel company, Best Western International Inc. (“Best Western”) has acquired the German-based hotel brand WorldHotels AG (“WorldHotels”). This is WorldHotels second change of ownership since it has been acquired by US-based hospitality sales and marketing consortium, Associated Luxury Hotels International (“ALHI”) two years ago. The acquisition was completed last week and will enhance Best Western upscale and luxury portfolio, while Worldhotels will benefit from Best Western’s E-commerce platform, partnerships, loyalty program, sales and marketing support, global distribution network, and revenue engines. WorldHotels represents a collection of approximately 300 hotels & resorts in premier destinations around the world. Today, Best Western counts more than 4,200 hotels in approximately 100 countries worldwide with 37 million members under the brand’s loyalty program.

Property Perfect to Invest US$900 million in Kiroro Village, Hokkaido

Thailand-based property developer, Property Perfect Plc (“Property Perfect”) has launched a masterplan to transform Hokkaido’s Kiroro village into an all-season alpine destination. With US$900 million (100 billion yen) to be invested over the next decade, Property Perfect will develop a valley village with a range of luxury villas, townhomes, and apartments centred around the Gateway, a ski club and centre with ski-in and ski-out access to shops, restaurants, services, and a kids’ centre. At present, a dining district with eleven restaurants and bars has opened in the village. By the end of 2019, Property Perfect will complete Yu Kiroro, a collection of 108 freehold luxury private residences in one-, two- and three-bedroom and penthouse configurations. The residences will also feature premium services including a ski valet, a natural indoor-outdoor onsen, 24-hour concierge, fitness center and lounge, and all-day dining options. Other hotels renovated and rebranded by Property Perfect include The Sheraton Hokkaido Kiroro Resort with 140 guestrooms and The Kiroro, a Tribute Portfolio Hotel with 282 guestrooms and suites.

SilkAir to Launch Non-stop Service Between Singapore and Busan

The regional wing of Singapore Airlines, SilkAir Private Limited (“SilkAir”), has announced plans for non-stop service between Singapore and Busan in South Korea, starting from 1 May 2019. This will be Silkair’s first South Korea destination and the first airline to schedule flights between Singapore and Busan. The airline will operate four flights per week, serviced by Boeing 737 MAX8 aircraft with both business and economy class seats. The new route will offer greater access and connectivity in the Asia Pacific region. Located on the Southeastern coast of South Korea, Busan is the second largest city of the country, known for its natural coastal scenery, local cultural attractions and food. Currently, SilkAir operates approximately 400 weekly flights to 49 destinations in 26 countries.

Absolute Share Price Performance, as on 22 February 2019