Singapore-listed hotel and serviced residences landlord Far East Hospitality Trust (Far East H-Trust) (SGX:Q5T) has released a notice for an Extraordinary General Meeting (EGM) with regards to the acquisition of the Rendezvous Grand Hotel Singapore and Rendezvous Gallery.
|The Rendezvous Grand Hotel Singapore and Rendezvous Gallery will be acquired for S$264.3 million on a 70 year leasehold.|
In the notice, Far East H-Trust has indicated that it expects the Rendezvous Grand Hotel Singapore and Rendezvous Gallery to contribute about 9.4 percent of the aggregate net property income for its portfolio once acquired. This comes on the back of expected RevPAR of S$166 for the properties, compared to the RevPAR for the upscale hotel market segment of S$227.502 for the period from January 2013 to March 2013.
Unit holders of Far East H-REIT are also expected to enjoy a higher distribution per stapled security (DPS) as a result of the acquisition - from 2.43 cents to 2.46 cents, which is an increase of approximately 1.1 percent for the period from the date of completion of the acquisition to 31 December 2013.
|Unit holders of Far East Hospitality Trust can expect a rise of about 1.1 percent as a result of the acquisition of the Rendezvous Grand Hotel Singapore and Rendezvous Gallery|
Units of Far East Hospitality Trust have ended flat from its previous close at S$1.09 each on the Singapore Exchange.