Singapore-based CDL Hospitality Trust (CDLHT) marks its first foray into continental Europe with the acquisition of Munich’s Pullman Hotel, along with its office and retail components for €98.9 million (S$154 million). Situated close to the major business district, the four-star hotel features 174 rooms and has easy access to the Allianz Arena, the English Garden, Olympic Stadium, and the fair grounds. The deal is accretive with a net property income yield of 5.6 per cent for FY2016 and will be fully funded by debt financing. According to Chief Executive Vincent Yeo, the move will strengthen the trust’s balance sheet and enhance financial flexibility, allowing it to pursue future growth opportunities through acquisitions and asset enhancements initiatives. CDLHT plans to acquire two additional European properties in 2017 once the existing deal is completed. Meanwhile, CDLHT also disclosed of raising S$255.4 million by launching a fully underwritten and renounceable rights issue as it realigns its capital structure through partially repaying its existing borrowings.
HVS APAC HOSPITALITY NEWSLETTER.