Andaz Singapore to be sold for Rm1.4bil

Khazanah unit M+S sells luxury hotel at record price

SINGAPORE: M+S Pte Ltd has agreed to the sale of all the shares of its wholly owned subsidiary, Ophir-rochor Hotel Pte Ltd (ORH), to Hoi Hup Realty Pte Ltd for a sale consideration of S$475mil (Rm1.4bil), or S$1.39mil per key.

ORH is the developer and owner of the five-star luxury lifestyle hotel, Andaz Singapore, in the citystate.

In a statement, the company yesterday said the proposed transaction of S$475mil would mark the highest price ever achieved for a standalone hotel transaction in Singapore.

In Asia, it represented the third highest price achieved this year.

M+S is a 60:40 joint venture between sovereign wealth funds Khazanah Nasional Bhd of Malaysia and Temasek Holdings of Singapore.

It was set up in 2011 to develop two integrated developments in central Singapore, namely, Marina One and Duo.

M+S said the proposed sale of ORH remained subject to customary closing conditions and JLL is the appointed advisor for the transaction.

Andaz Singapore is a five-star luxury lifestyle hotel by Hyatt Hotels Corp.

It opened its doors in 2017 and became 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 mixed-use development Duo and is situated in the Ophir-rochor corridor in Singapore, next to the cultural neighbourhood of Kampong Glam and has direct connectivity to Bugis MRT Station.

M+S CEO Kemmy Tan said the record price of S$475mil was testament to the quality of Andaz Singapore and the unparalleled experiences it offers to its guests.

“It also reflects the potential for growth of the hotel in tandem with the continued evolution of the Bugis district as a vibrant extension of the existing CBD.

“Having assessed such a strong offer, we have determined that the proposed transaction will allow us to maximise returns to our shareholders, while handing over the reins to a very established and exciting developer in Hoi Hup to take the asset forward,” she said.

“M+S will continue to own and manage our assets at Marina One to the optimal level for our shareholders,” she added.

Separately, Hoi Hup Realty chairman Wong Swee Chun said:

“We are attracted to the rarity of this 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,” he explained.

Hoi Hup Realty is an established and accomplished property developer with over 36 years’ experience in the real estate development industry.