Gaw purchased Big Hotel in 2015 and rebranded it as Hotel G (Source: GCP Hospitality)
Gow Capital Partners has completed the sale of Hotel G in Singapore to an entity controlled by CapitaLand Group, according to company records filed with local authorities.
The special purpose vehicle that owns the 308-key budget hostel currently includes Mr Bae Shu Kim, Mr Ho Kit Mak, Mr Patricia Goh and Edward, all senior executives in CapitaLand Group’s investment or lodging division.・A source familiar with the transaction said Mr. Bin is listed as a director. The Temasek-backed giant paid just under S$240 million ($180 million) for the property near the Bugis area.
The deal comes as CapitaLand’s Ascott lodging arm conducts exclusive due diligence to acquire the 94,560 sq ft (8,785 sq m) hospitality asset from a fund managed by the Hong Kong-based private equity firm, Minty said. The deal was passed less than two months after Andy reported it.
CapitaLand Investment, the listed fund management arm of Southeast Asia’s largest property company, said in an interview last year that it aims to increase fee income from its lodging business to S$500 million a year by 2028. – The company aims to use acquisitions as one of the main ways to drive its expansion.
Bet on Bugis and Bencoolen
In 2015, Go Capital Partners made its first hospitality acquisition in Singapore, acquiring the then Big Hotel at the intersection of Middle Road and Bencoolen Road for S$203 million ($144 million at the time). did.
Ascott’s Bae Shue Kim is now one of the directors of the company that owns Hotel G.
The Goodwin Goh-led company began selling the asset over a year ago with an initial asking price of S$320 million. According to MSCI, transactions in Singapore income real estate assets fell 29% in the first nine months of this year due to rising interest rates, while Gaw Capital achieved 75% of its target price.
Since the investment in the 16-story hotel is already more than eight years old, industry analysts speculate that the company may have been motivated to sell the asset to return capital to investors. Masu.
Both Gaw Capital and CapitaLand have not yet responded to inquiries from Mingtiandi at the time of publication.
In the reported compensation, CapitaLand paid the property the equivalent of S$779,220 per key, or S$2,538 per square foot, with a typical 118 square foot room costing about $95 per night in February. Available in USD.
The hotel, which started out as an office complex and was converted into hospitality use by its previous owners, is within a few minutes’ walk of Lazada’s headquarters on Bras Basah Road and Bencoolen and Bras Basah MRT stations.
GuocoLand’s Guoco Midtown helps bring Singapore’s commercial center a little closer to the Bugis district, with the hotel located 900 meters (just over half a mile) from its 709,000 sq ft office building and with 90% occupancy. Exceeded. in November.
I love that inn
CapitaLand Investment saw revenue from its lodging business increase 31% in the first nine months of this year, according to the company’s financial report, and the company hopes to build on that success.
“There are huge tailwinds for Lodge,” Paul Tam, chief financial officer at CapitaLand Investments, said in an interview in November. This is what I told Andy: We will acquire Hotel G.
CapitaLand Investment earned S$249 million in fee income from its lodging business in the first nine months of 2023, with the sector outstripping commercial operations and accounting for the largest share of 31% of the company’s total fee income. has made a significant contribution.
Four CapitaLand directors are currently listed as controlling Hotel G, including Beh Siew Kim, chief financial officer and sustainability officer of the group’s Ascott Ltd lodging division. Mr. Hoe Kit Mak is the Managing Director responsible for Private Equity Investments in CapitaLand’s Lodging Division and Ms. Patricia Goh is the Chief Executive Officer of the Southeast Asia Investment Division.
Mr Goh led the recent launch of CapitaLand, which together with Thailand’s Pruksa Holding established a fund targeting wellness and healthcare investments in Southeast Asia. Edward Bin Chung Yiu is Vice President of Finance at CapitaLand.