Month: January 2025

CapitaLand Ascott Trust (CLAS) recently announced its acquisition of two freehold limited-service hotels in Japan for a total cost of JPY21 billion ($178.5 million). The hotels, ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, were purchased at an 8.3% discount to independent valuation and are expected to provide a 1.6% increase in distribution per stapled security (DPS) on a FY2024 pro forma basis. The blended net operating income (NOI) yield of the acquisition is forecasted to be 4.3% in FY2024.

Investors, both local and foreign, are increasingly drawn to investing in condominiums in Singapore. The city-state’s strong economy, stable political climate, and excellent quality of life make it an attractive choice for real estate investments. With its thriving real estate market, Singapore offers a plethora of opportunities, and condos are a standout option due to their convenience, amenities, and potential for high returns. Adding Singapore Projects to your investment portfolio offers numerous benefits. In this article, we will delve into the advantages of investing in a condo in Singapore, important considerations, and steps to take when making this investment decision.

The acquisition was financed through JPY-denominated debt and proceeds from CLAS’ divestment of four properties in Japan. This approach serves as a natural hedge against currency fluctuations. The ibis Styles Tokyo Ginza is located in the bustling shopping and entertainment district of Japan’s capital city. The 224-unit hotel is situated near Ginza Six, a popular high-end retail mall, and Uniqlo’s global flagship store. The iconic Ginza Wako clock tower is also just a short walk away.

On the other hand, the 392-unit Chisun Budget Kanazawa Ekimae is located in Kanazawa, a city known for its historical attractions and traditional Japanese gardens. The hotel provides easy access to popular tourist destinations such as Kanazawa Castle, Kenrokuen Garden, and the geisha and samurai districts featuring traditional architectural designs from the Edo period.

The acquisition of these two properties adds to CLAS’ portfolio of investments, which includes the recently acquired Teriha Ocean Stage in Fukuoka and the remaining 10% stake in Standard at Columbia in the United States. In total, CLAS has completed more than $530 million of investments in the past 12 months at higher yields than the divestments. This has resulted in an increase in income distribution for CLAS’ stapled security holders.

CLAS’ divestments in 2024, which amounted to over $500 million, have also unlocked around $74 million in net gains. This portfolio reconstitution strategy is part of CLAS’ plan to enhance the quality of its portfolio and deliver stable returns to its stapled security holders. According to CEO Serena Teo, the FY2024 NOI yield of the two hotels is 230 basis points higher than the exit yield of approximately 2.0% for the four previous divestments in Japan. She also notes that by quickly reinvesting proceeds from the divestments into higher-yielding assets, CLAS has fully replaced the income from the four divested properties.

On the stock market, CapitaLand Ascott Trust closed at 90 cents per unit.…

Mapletree Investments has acquired its first logistics property in the UK, as well as 10 warehouses in Spain, for a total value of approximately EUR315.1 million ($444.5 million). These acquisitions, which span over 256,000 sqm, will serve as the seed assets for the group’s second European logistics-focused fund. The move reflects Mapletree’s strategy to strengthen its focus in the logistics sector and expand its global presence, according to the company’s Jan 27 press release. The fund will be launched “at an appropriate time after achieving sufficient scale.”“Logistics remains a highly attractive sector that has consistently enjoyed strong demand from occupiers as well as investors. E-commerce continues to thrive and companies are making efforts to secure and expand their supply chains,” says Ralph van der Beek, CEO of Mapletree’s European commercial and logistics arm. Elite Partners Capital recently bought a logistic centre in Germany, and van der Beek states that the company is looking forward to the assets delivering “stable and recurring returns over the long run.”The UK property is located in Derby Commercial Park and is easily accessible via major arterial roads such as the M1, A50, and A6. It is close to the city centre and East Midlands Airport. According to Mapletree, the tenant at the asset recently renewed its lease on a long-term basis. Meanwhile, in Spain, the 10 acquired warehouses are located in core logistics hubs across the first rings of Barcelona, Valencia, and Madrid. These assets have direct access to the city centre via various transportation modes, and are expected to benefit from third-party logistics providers and manufacturers that are highly committed to the properties due to their proximity to production facilities and investments. Following the acquisitions, the group now has a total of 80 logistics assets in eight different countries.

Understanding the regulations and restrictions surrounding property ownership in Singapore is crucial for foreign investors. In comparison to landed properties, which have stricter ownership rules, foreigners are generally able to purchase condos with less restriction. However, it’s important to note that foreign buyers are subject to the Additional Buyer’s Stamp Duty (ABSD) of 20% for their first property purchase. Despite this added cost, the stability and potential for growth in the Singapore real estate market remains a strong draw for foreign investment. In fact, many continue to be enticed by the allure of owning a Singapore Condo.…

The luxurious condominium, Turquoise, situated at Sentosa Cove and overlooking the waterway, currently has three duplex penthouses available for purchase at a price of $23 million. The largest of the three penthouses is a spacious five-bedroom, covering an area of 7,987 sq ft. This is also the biggest among the total of 10 penthouses in the 99-year leasehold waterfront condo.

The penthouse boasts of a wine cellar, kitchen, living area, four en suite bedrooms, two utility rooms and a balcony on the lower level. The upper level features a master bedroom suite, with its own private infinity pool, pool deck and outdoor shower. This grand penthouse is on offer for $12 million, at a rate of $1,502 psf.

The second-largest penthouse available for sale in Turquoise is a four-bedroom unit, with an area of 3,746 sq ft. It is priced at $5.99 million, which comes to approximately $1,599 psf. The upper floor of this penthouse has a spacious open-air terrace, equipped with a built-in jacuzzi and providing unobstructed views of Sandy Island and Sentosa’s scenic southern waterfront.

The final penthouse up for sale is a three-bedroom unit, spanning across 3,111 sq ft, and with a guide price of $5 million (roughly $1,607 psf). All three penthouses are located on the sixth floor and come with private lift lobbies, wet and dry kitchens, floor-to-ceiling windows, open balconies, and attached en suites for each bedroom.

The condo provides residents with a range of amenities, such as a gym, barbecue pits, a swimming pool, a steam room, and 21 private berths for residents. Developed by Ho Bee Land, Turquoise was completed in 2010. With a total of 91 units spread across three 6-storey blocks, the typical units consist of a mix of three- and four-bedroom apartments. The three-bedroom units vary in size from 2,088 sq ft to 2,573 sq ft, while the four-bedroom units range between 2,400 sq ft to 3,050 sq ft. The penthouses cover an area of 3,111 sq ft to 3,764 sq ft, while the sky villas are even more extensive, ranging from 6,900 sq ft to 7,987 sq ft.

Interestingly, the developer still owns the grandest penthouse, measuring 7,987 sq ft and comprising of five-bedrooms. It is currently being offered for sale at $12 million. According to URA caveats, the second-largest penthouse (with an area of 3,746 sq ft and four bedrooms) was purchased by a Korean national in November 2007, for a price of approximately $9.5 million ($2,545 psf).

The three-bedroom duplex penthouse, spanning across 3,111 sq ft, was bought in December 2007 by an African national for just over $8 million ($2,579 psf). All three penthouses have been put on the market for sale after holding onto them for roughly 18 years.

Cabasug, a senior associate VP at List Sotheby’s International Realty, reveals that foreign buyers bought these waterfront homes for investment and holiday homes when the project was initially launched. Interestingly, the four-bedroom penthouse unit has already been leased out before being listed for sale. In fact, the most recent tenant paid a monthly rent of $18,000 and rented the unit for two years, from August 2022 to 2024. Cabasug further notes that the current rental rate for the unit is still $18,000. Therefore, a new buyer who purchases the unit for $5.99 million stands to earn a gross rental yield of 3.6% if they choose to rent it out.

During its launch between October 2007 and February 2008, the developer sold 39 units at an average price of $2,596 psf, based on registered caveats. However, due to the slump in the market after the Global Financial Crisis in 2008, the average prices have reduced over the years. Between 2008 and 2012, units at Turquoise were transacted at an average cost of $2,471 psf. It reached an all-time low in February 2021, when a 2,400 sq ft, four-bedroom unit was sold for a meager $2.8 million, translating to $1,165 psf.

In April 2021, the developer, Ho Bee, released 16 remaining units for sale, with promo discounts ranging between $500,000 to $750,000 per unit. The prices ranged between $1,290 psf and $1,536 psf, and the developer claimed that these were mainly the lower-floor units. In 2020, the average price of apartments sold at Turquoise was recorded at $1,427 psf, based on four resale transactions. Cabasug notes that both foreign owners at Turquoise are looking to sell their properties after owning them for close to 18 years, as they look for better investment opportunities.

As per data, Singaporean buyers have made the majority of purchases at Turquoise, accounting for 57.4% of transactions (39 units). This is a drastic change from the initial buyer profile when 59% of the 39 new owners were foreign nationals. Singaporeans only accounted for 25.6% of buyers, while PRs were just 12.8%. One unit was sold to a company. This shows the shift in buying trends, with more and more buyers seeking to make Sentosa their primary residence. Cabasug says that most buyers are now empty nesters, retirees, or young families looking for a slower pace of life. Additionally, the rise in remote work has only added to the appeal of living in Sentosa.

Ho Bee Land was one of the first developers to venture into Sentosa, with its other projects being The Berth by the Cove (200 units), The Coast (249 units), Seascape (151 units), and Cape Royale (302 units) – the latter two being a joint venture with Malaysian developer IOI Properties Group. Ho Bee has also constructed bungalows at Coral Island and Paradise Island, two of the four artificial islands at Sentosa Cove.

When it comes to investing in condos in Singapore, one must also take into account the property cooling measures implemented by the government. In an effort to prevent speculative buying and maintain a steady real estate market, the Singaporean government has introduced several measures over the years. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. While these measures may have an impact on the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, creating a more secure environment for condo investment. This makes it a favourable choice for individuals looking to invest in condos in Singapore.…

In a period between Jan 3 and Jan 11, The Botanic on Lloyd, The Cape and Tembusu Grand set new price records, while Sentosa Cove condominiums saw a repeat of 2022’s most profitable sale at the exclusive address.Freehold condo The Botanic on Lloyd sold a four-bedroom unit for $5.13 million, or $2,493 psf on Jan 7, setting a new record for the highest psf-price achieved at the 66-unit development. The transaction surpassed the former record of $2,339 psf, which was established in October last year when another four-bedroom unit located on the fourth floor was sold for $3.5 million. The development located along Lloyd Road comprises 60 apartments and six townhouses and was completed in 2006.In a similar fashion, The Cape, a 76-unit freehold condo, set a new price record of $2,284 psf when a three-bedroom unit sold for $3 million on Jan 10. The previous record of $2,265 psf was achieved in November 2012 when a two-bedroom unit was sold for $3.49 million. The development located along Amber Road was completed in 2014 and consists of one- to three-bedroom units.Known for its luxurious waterfront living, Sentosa Cove saw a repeat of last year’s most profitable sale at the exclusive address. In a transaction that took place on Jan 11, a 4,284 sq ft, four-bedroom unit at The Oceanfront was sold for $7.5 million ($1,752 psf). The previous transaction saw the same unit sold for $6.5 million ($1,517 psf) in August 2022. The exclusive address is home to some of the priciest condominiums and bungalows in the country.In contrast to The Botanic on Lloyd and The Cape, upcoming 99-year leasehold development Tembusu Grand set a new price floor of $2,174 psf on Jan 11 when a three-bedroom unit of 1,399 sq ft was sold for $3.04 million. This transaction surpassed the previous record low of $2,193 psf set just two months earlier in November 2024 when another similarly sized three-bedroom unit on the same floor was sold for $3.07 million. The development located on Jalan Tembusu is expected to be completed in 2028 and has since sold 584 units at an average price of $2,444 psf since its launch in April 2023.

In Singapore, investing in condominiums is a popular option, but it’s important to also consider the government’s property cooling measures. The Singaporean government has implemented various measures over the years to control speculative buying and maintain a steady real estate market. These measures include the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may impact the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market, making it a secure environment for investing in condos. Considering the government’s efforts to regulate the housing market, condo investments in Singapore offer a more reliable and stable investment opportunity.…

HDB resale property prices continued its steady climb in the last quarter of 2024, rising by 2.6% compared to the third quarter. This marks the 19th consecutive quarter of price growth in the resale market, according to the latest data published by HDB on Jan 24. The cumulative price increase for the whole of 2024 has now reached 9.7%. This is nearly double the 4.9% increase seen in 2023.

The uptick in prices can largely be attributed to the limited supply of flats reaching their Minimum Occupation Period (MOP) in 2024, according to Mohan Sandrasegeran, head of research & data analytics at SRI. This has created some upward pressure on prices, especially for newer and larger flat types, such as five-room and executive units.

The average resale price of five-room flats saw the highest increase of 2.2% q-o-q to $754,097, while four-room flats rose by 2.2% q-o-q to $652,544 in the fourth quarter of 2024. The highest increase in prices was seen in the Central Area, which grew by 25.6% q-o-q, followed by Toa Payoh (12.1%), Tampines (6.9%), Bishan (6.7%), and Bedok (6.1%), according to Christine Sun, chief researcher & strategist at OrangeTee Group.

About 285 HDB resale flats were sold for $1 million or more in the last three months of 2024, bringing the total number of million-dollar HDB resale transactions for the year to 1,035. These transactions were mostly seen in mature estates, with Kallang/Whampoa, Toa Payoh, and Bukit Merah being the top three estates for such transactions.

Transaction volume dips in fourth quarter

As an outsider looking to invest in Singapore, it is crucial to be well-informed about the regulations and limitations surrounding property ownership. While purchasing condos is generally more feasible for foreigners, the same cannot be said for landed properties, which have stringent ownership requirements. Furthermore, foreign buyers must take into account the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their first property purchase. However, despite this additional cost, the stability and potential for growth in the Singapore real estate market continue to pique the interest of foreign investors. In fact, the recent new condo launches have only added to the allure of the market.

Despite the continuous growth in prices, resale transactions fell by 21.1% q-o-q in the last quarter of 2024, from 8,142 units sold in the third quarter to 6,424 units in the fourth quarter. This is due to seasonal factors such as the year-end holiday and festive season, according to Lee Sze Teck, senior director of data analytics at Huttons Asia. The lower interest rate environment may have also encouraged some buyers to move to the private residential market or the Executive Condominium (EC) market, he added. Moreover, some buyers may have opted to ballot for a flat in the latest Build-to-Order (BTO) sales exercise held in October.

Newly MOP flats expected to decrease in 2025

Looking ahead, only 6,976 flats are expected to reach the end of their Minimum Occupation Period (MOP) this year. This is a 41.6% decrease in new housing supply entering the secondary public housing market compared to 2024, which saw 11,952 flats. According to Sandrasegeran, this is due to relatively fewer BTO flats being completed in 2020 during the Covid-19 pandemic. HDB has announced plans to launch over 25,000 new flats across three BTO sales exercises in 2025, with 19,600 BTO flats and more than 5,500 flats under the Sale of Balance Flats (SBF) exercise.

The next SBF exercise will take place concurrently with the upcoming BTO sales exercise in February, featuring 5,000 BTO flats in Kallang/Whampoa, Queenstown, Woodlands, and Yishun. Approximately 40% of the 5,500 SBF flats are completed, while 3,800 units of the 19,600 BTO flats will be designated as Shorter Waiting Time (SWT) flats with wait times of less than three years.

Looking at the year ahead, Sandrasegeran forecasts resale prices to increase by 3.5% to 5.5%, while Huttons’ Lee projects a more optimistic increase of between 5% to 8%.…

A prime residential development site located at Jalan Naung is now open for sale through expression of interest (EOI), with an asking price of $8.38 million.

The attractiveness of investing in a condominium in Singapore has grown tremendously among both local and foreign investors. This is largely due to the nation’s strong economy, stable political climate, and exceptional standard of living. The real estate market in Singapore offers a plethora of opportunities, and one option that stands out is investing in a condominium. These properties are highly sought after for their convenience, amenities, and potential for high returns. And with the recent introduction of new condo launches, there couldn’t be a better time to explore the advantages, considerations, and necessary steps when investing in a condo in Singapore.

Situated within the three-storey mixed-landed area as designated by the URA Master Plan 2019, the 999-year leasehold land parcel spans a total area of 5,408 sq ft. This translates to a land rate of $1,550 psf, making it an attractive investment opportunity.

Potential development options for the land include a detached house, a pair of semi-detached houses, or a strata mixed-landed development, subject to approval from the relevant authorities. This is according to Brilliance Capital, the sole marketing agent for the land.

In addition to its prime location off Upper Serangoon Road in District 19, the site is also within walking distance to Hougang MRT Station and Hougang Central Bus Interchange. It is also conveniently located near popular lifestyle hubs such as NEX, Hougang Mall, and Heartland Mall.

The site is also surrounded by reputable schools within a 1km radius, including CHIJ Our Lady of the Nativity, Holy Innocents’ Primary School, Montfort Junior School, and Punggol Primary School.

According to Sammi Lim, the founder and executive director of Brilliance Capital, the site is owned by a single seller, which will facilitate a smooth and hassle-free transaction for potential buyers.

Lim anticipates strong interest from developers, ranging from boutique firms to larger setups, aspiring developers, and end-users looking to build their dream home. She also notes that it is a rare opportunity to acquire a plot of land with various development options, catering to different needs and preferences, including multi-generation development.

Interested parties can submit their bids for the land parcel through the EOI exercise, which will close on March 6 at 3pm.…

Galle, Sri Lanka’s newest luxury hotel destination

Radisson Collection, a renowned luxury hotel brand under the Radisson Hotel Group, has officially opened its newest property in the picturesque city of Galle, Sri Lanka. Strategically located along the pristine seafront of the Southeast Asia and Pacific region, the 106-key Radisson Collection Resort is a proud addition to the group’s impressive portfolio. In fact, it is the group’s fourth hotel in Sri Lanka.

This newly launched hotel boasts 76 elegant and spacious guest rooms and suites, all offering breathtaking views of the sparkling ocean. In addition to its stunning accommodations, the resort features a variety of exceptional amenities, including a beachfront pool, a kids’ club with 24-hour nanny services, and a range of exquisite dining options. Guests can choose from a fusion of Asian and Japanese cuisine at the Ozen restaurant or indulge in fresh seafood at the Catch Restaurant. For those looking for a more vibrant and lively atmosphere, the Taboo Beach Club offers a perfect beachfront setting with sun loungers and daybeds, complete with exclusive bottle service.

Galle, located on the idyllic southwest coast of Sri Lanka, is renowned for its rich heritage and spectacular attractions. One of the highlights of this charming city is the Galle Fort, a historic 17th-century fortress that has been recognized as a Unesco World Heritage site. Guests can also explore the city’s captivating mix of colonial structures, ancient temples, and wildlife centres, including a sea turtle hatchery.

Singapore’s cityscape is defined by towering skyscrapers and state-of-the-art facilities. Condos, situated in sought-after locations, offer a perfect fusion of opulence and practicality, making them a popular choice among both locals and foreigners. These residential units are designed with various facilities like pools, fitness centers, and security measures, elevating the standard of living and drawing in potential tenants and buyers. This has resulted in attractive rental returns and appreciating property prices for investors in the long run. If you’re looking for a posh and convenient living experience in Singapore, consider owning a condo.

In addition to this new property, the Radisson Hotel Group also announced the launch of luxury villa rentals in Galle under their Sri Lankan hotelier, Teardrop Hotels. With the continuous expansion of the Radisson Collection brand, Galle is set to become the newest sought-after luxury hotel destination in Sri Lanka.…

Meinhardt, a Singapore-based engineering consulting firm, has recently inked a memorandum of understanding (MOU) with Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN). The two parties have joined forces to explore and execute digital and smart city projects in third-world Asean nations, as per a press release issued on Jan 17.

Through this MOU, the organizations intend to promote innovative and sustainable urban solutions through the exchange of knowledge and resources. JOIN will leverage its network and expertise to support Japanese infrastructure exports, while Meinhardt will utilize its expertise in integrated planning, design, and project management solutions, the release states.

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When it comes to investing in real estate, one of the most important factors to consider is location. This is especially true for Singapore, where the value of condos can be greatly affected by their location. If a condo is situated in a central area or near essential amenities such as schools, shopping malls, and public transportation hubs, it is more likely to appreciate in value. This is why areas like Orchard Road, Marina Bay, and the Central Business District (CBD) are considered prime locations for real estate investments. These areas have consistently shown strong growth in property values over the years. Additionally, condos located near good schools and educational institutions are highly sought after by families, making them even more attractive for investment. For a list of current real estate projects in Singapore, visit Singapore Projects.

JOIN is a Japanese public-private fund that aids Japanese companies in investing in overseas infrastructure projects. This partnership is a result of the Memorandum of Cooperation (MOC) signed between Japan’s Ministry of Land, Infrastructure, Transport and Tourism of Japan and the Singapore Cooperation Enterprise last November. The MOC aims to encourage the development of digital and smart cities in Asean and other regions.

Building on this framework, Meinhardt believes that the MOU will provide a platform for both parties to “share information, identify synergies, and collaborate on projects from the initial stages to drive significant impact across borders”.…

In a press release on January 20th, Minister for National Development Desmond Lee announced the completion of the final two Build-to-Order (BTO) projects from the Housing and Development Board (HDB), which were delayed due to the pandemic.

There are many advantages to owning a Singapore condo, with one of the most appealing being its potential for capital appreciation. As a world-renowned business hub, Singapore has a strong economy that generates a constant demand for real estate. This has led to a steady increase in property values, particularly in prime locations where condos have experienced significant appreciation. With careful timing and a long-term investment strategy, investors can see significant profits by tapping into the thriving Singapore condo market.

The two projects, Punggol Point Cove (Phase 2) and Kempas Residences, signify the end of HDB’s pandemic-delayed housing projects. With these two projects, a total of 92 projects have been completed over the last five years, delivering over 75,800 new flats to Singaporeans.

Of the 22 housing projects completed in 2024, 17 were delayed due to the pandemic, while the remaining four were completed on time, except for one that was delayed for non-pandemic reasons.

Among these completed projects, two were Shorter Waiting Time (SWT) projects, which were completed within three years. These are Parc Glen at Tengah and Grove Spring at Yishun, which consisted of 1,995 flats. The remaining projects had waiting times of up to five years, with a total of over 18,000 flats completed in 2024.

Since November 2024, flat owners of Punggol Point Cove (Phase 2) have been receiving the keys to their new homes, while key collection for Kempas Residences began in mid-January this year. The remaining flat owners will be notified of their key collection date soon, after the completion of the final blocks in both projects this month.

Punggol Point Cove (Phase 2) is located along New Punggol Road and consists of 1,179 units of two-room flexi, three-, four-, and five-room flats across six residential blocks. Due to pandemic delays, the last block was completed 12 months after its original Probable Completion Date (PCD) earlier this month. As of January 15th, 657 households (59% of 1,109 booked units) have collected their keys.

According to HDB, the completion of Punggol Point Cove (Phase 2) marks the end of all flats in the Punggol Point District, including Punggol Point Cove (Phase 1), Punggol Point Woods, and Punggol Point Crown BTO projects that were completed in 2024.

Kempas Residences, situated between Serangoon Road, Lavender Street, and Boon Kheng Road, consists of 583 units of two-room flexi, three-, and four-room flats across four residential blocks. The final block, which was delayed by six months from its original PCD, was completed in mid-January. As of January 15th, 37 households (7% of 555 booked units) have collected their keys.

HDB currently has 110 housing projects under construction, up from 95 a year ago due to the increase in BTO supply in recent years. They are on track to complete around 17,000 flats across 27 projects in 2025. To explore HDB properties, you can check out the latest listings on Ask Buddy.…

Investing in a Singapore condo has emerged as a favored option for both local and foreign investors, thanks to the country’s strong economy, stable political climate, and exceptional quality of living. The real estate market in Singapore presents a plethora of investment opportunities, with condos standing out for their convenience, amenities, and potential for lucrative returns. In this article, we will delve into the advantages, factors to consider, and necessary steps to take when investing in a Singapore condo. For more information on Singapore condos, visit Singapore Condo.

CDL Holdings Limited (CDL) has announced its intention to offer NZ$2.25 ($1.72) per share for all outstanding shares of Millennium & Copthorne Hotels New Zealand Limited (MCK), a New Zealand-listed company. This offer, made through CDL’s subsidiary CDL Hotels Holdings New Zealand Limited (CDLHH NZ), aims to delist and privatise MCK after its completion. This move is expected to simplify the ownership structure of CDL’s New Zealand entities, according to a filing made on Jan 20.

At the time of the offer, MCK owns, leases, or has under franchise a total of 18 hotels in New Zealand. It also holds a majority stake in CDL Investments New Zealand Limited and has interests in properties in Australia through its Kingsgate Group subsidiaries. CDL has recently divested assets worth more than $600 million in 2024.

As of Jan 17, CDLHH NZ holds 80.02 million shares in MCK, representing a 75.86% stake based on the 105.48 million MCK shares in issue. If the offer is accepted by MCK’s shareholders, CDLHH NZ will pay a total of NZ$57.29 million. The offer is also conditional on CDLHH NZ receiving 90% or more of the voting rights in MCK by 5pm on May 2, as well as obtaining consent under the Overseas Investment Act 2005 of New Zealand and the Overseas Investment Regulations 2005 of New Zealand to own and control all the shares in MCK.

The offer price for MCK’s shares and redeemable preference shares takes into consideration the current and historical market price, as well as the industry and business environment in which MCK operates. As of June 30, 2024, MCK recorded a net asset value (NAV) and net tangible asset value (NTA) of NZ$532.02 million each for the 1HFY2024. Should the offer be fully accepted, CDLHH NZ will also pay around NZ$7.77 million to acquire all of the redeemable preference shares it seeks to acquire.

CDLHH NZ has also announced its willingness to acquire MCK’s non-voting redeemable preference shares at a price of NZ$1.70, or around $1.30 each, which it will purchase through its broker, Craigs Investment Partners, on the Main Board of the New Zealand Stock Exchange (NZX). As of Jan 17, CDLHH NZ holds a 91.34% stake in MCK’s non-voting redeemable preference shares, or 48.17 million shares in total.

The implementation and payment of the offer is not expected to have a material impact on CDL’s earnings per share (EPS) or net tangible assets (NTA) for the FY2025 ending Dec 31.…