HOTELS & TOURISM | Staff Reporter, Singapore

Far East Hospitality Trust to buy Oasia Hotel Downtown for $210m

An additional $15m will be issued to the vendor if net property income strikes $9.9m.

Far East Hospitality Trust (FEHT) entered an agreement to buy 65-year leasehold estate in Oasia Hotel Downtown, a 314-room hotel in Tanjong Pagar, for $210m.

According to OCBC Investment Research, the acquisition will be funded by debt. On a pro forma basis, 9M2017 distribution per unit (DPU) would be 4% higher at 3.09 cents instead of 2.97 cents.

An additional $15m worth of stapled securities will be issued to the vendor if the asset’s net property income (NPI) is $9.9m or more for two consecutive fiscal years after the completion.

The acquisition is subject to the approval of stapled security holders at an extraordinary general meeting to be convened. 

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