Singapore-listed Frasers Hospitality Trust announced on 15 June that it has completed the acquisition of Maritim Hotel Dresden in Germany for EUR58.4 million (SGD90.4 million) from Internos Global Investors Kapitalverwaltungsgesellschaft .
The acquisition, which was first announced in May 2016, represents Frasers Hospitality Trust's first property purchase in Germany. Maritim Hotel Dresden is is a freehold 328-key, heritage-listed property and will continue to operate under the Maritim brand.
“This acquisition is in line with our strategy to invest in quality assets that are well located in key cities with sound economic fundamentals”, said Eu Chin Fen, CEO of Frasers Hospitality Trust’s REIT component manager, in a statement on the acquisition in May 2016.
Including fees and other expenses, the acquisition has amounted to approximately EUR62.5 million (SGD96.5 million). These have been fully funded by the proceeds from the issuance of SGD100 million in fixed rate subordinated perpetual securities that was announced on 12 May 2016.
With the completion of the acquisition, Frasers Hospitality Trust’s portfolio of global hotels and serviced residences has now increased to 14 while its portfolio size has now grown from SGD1.96 billion to SGD2.05 billion.
Units of Frasers Hospitality Trust are currently trading 1.3% higher from its previous close on the Singapore Exchange at SGD0.78.