Oakwood Premier OUE Singapore sold for S$289 million

George Sell George Sell Uploaded 19 September 2019

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Singapore: Developer OUE Limited has signed agreements to sell Oakwood Premier OUE Singapore, its luxury serviced residences and hotel business on Shenton Way, for S$289 million (£167 million).

The buyers are joint venture firms formed by Hong Kong financial services firm AMTD Group and hotel operator Dorsett Hospitality International. Dorsett is wholly-owned by Hong Kong-listed property firm Far East Consortium International (FEC).

OUE said that Alkas Realty, its wholly-owned subsidiary and property holding firm, has entered into property sale and purchase agreement with DHI Holding (S) Pte Ltd for the sale and transfer of Alkas' leasehold interest in Oakwood Premier together with all plant, machinery and equipment owned by Alkas. The 99-year leasehold interest expires in July 2066.

Oakwood Premier is the hotel and serviced residences component of the redeveloped OUE Downtown, a mixed-use complex in Singapore's central business district. Managed by Oakwood Worldwide (Asia), it has 268 rooms comprising studio, one- and two-bedroom apartments, as well as two dining facilities and other amenities, occupying levels 7 to 32 of OUE Downtown 1.

Meanwhile, OUE Downtown Pte Ltd (OUEDTPL), a wholly-owned subsidiary of OUE and serviced apartment operator, has also entered into a business SPA to sell the Oakwood Premier business and assets to DHI Downtown. The purchase consideration for OUEDTPL is $1.9 million, and was negotiated after taking into account the book value of the business and assets. DHI Downtown, will apply to the Hotels Licensing Board to seek approval of the change of the name of the property to Oakwood Premier AMTD Singapore.

FEC said it is buying Oakwood Premier in order to build a stronger presence in Singapore - where it already operates the Dorsett Singapore hotel - and to further diversify its hotel portfolio.

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