Singapore-listed hotels landlord CDL Hospitality Trust (CDLHT)(SGX:J85) has entered into an agreement with Dubai-based luxury hotel company Xanadu Holdings Pvt Ltd for the acquisition of a resort in the Maldives at a purchase price of US$59.6 million (S$74.8 million).
|Singapore Hospitality REITs are facing pressure from an increase in room supply in the country.|
The resort, known as the Jumeirah Dhevanafushi, is expected to provide pro forma annualized net property income yield of 6.2 per cent for the nine months ended 30 September 2013. This translates to a yield accretion of approximately 2.2 per cent for unit holders.
Acquisition of its second property in Maldives comes on the back of strong showing by the trust's currently sole resort in the nation - the Angasana Velavaru. As room rates in Singapore continue to face pressures from oversupply in the next couple of years, CDLHT seems to have taken on an external outlook to prop its revenue figures.
Mr Vincent Yeo, CEO of M&C REIT Management Limited, has said that acquisition was done to capture the growing affluence of travelers in the region. “We believe that the Maldives will continue to benefit from the increased patronage from Asian travelers with a rapidly rising level of disposable income for leisure travel. Our second Maldives resort acquisition following that of the successful acquisition of Angsana Velavaru is the execution of our strategy to capitalize on this trend and on the strong demand for Maldives generally.
Units of CDL Hospitality Trust ended the day 1.25 per cent lower to close at S$1.58 on the Singapore Exchange.