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Serviced apartment business and hotel business sold by OUE

by • September 19, 2019 • Commercial Property Loan, hotelComments (0)116

OUE sells hotel and serviced apartment businesses for $289 million

The Board of Directors of OUE Limited announced on Sep 18 that Alkas Realty Pte. Ltd. (“Alkas”), an indirect wholly-owned subsidiary of the Company, has entered into a sale and purchase agreement (SPA) with DHI Holding (S) Pte. Ltd. in respect of the sale and transfer by Alkas to the Property Purchaser of its leasehold interest for a term of 99 years commencing from 19 July 1967 in respect of the whole of OUE Downtown Serviced Apartments.

The sale of OUE Downtown Serviced Apartments is done together with all plant, machinery and equipment located in the building.

The purchase consideration payable to Alkas under the Property SPA is $287 million. The Property Purchase Consideration had been negotiated on a willing-buyer and willing-seller basis, after taking into account, inter alia, the market value of the Property.

Meanwhile OUE Downtown Pte. Ltd (OUEDTPL), a direct wholly-owned subsidiary of the OUE entered into a sale and purchase agreement with DHI Downtown Pte. Ltd. in respect of the sale by OUEDTPL to the Business Purchaser of the business together with the assets of OUEDTPL, as carried on Sep 18 and immediately before completion under the Business SPA.

The purchase consideration payable to OUEDTPL in connection with the sale of the Business and Assets is $1,9 million. The Business Purchase Consideration had been negotiated on a willing-buyer and willing-seller basis, after taking into account inter alia, the book value of the Business and Assets.

OUE assured that both transactions are not expected to have a material effect on the net tangible assets or earnings per share for the financial year ending 31 December.

Before the two deals were concluded, OUE attempted to sell its serviced apartment business to OUE Hospitality Trust (OUE H-Trust). The latter declined the offer saying, “acquiring Oakwood Premier OUE Singapore based on the proposed terms would not be accretive to OUE CREIT’s distribution per unit.”

serviced apartment

Edward Lim, Director of Operations, China receiving the ‘Best Serviced Residence in Asia-Pacific’ award on behalf of Oakwood Premier OUE Singapore

In another press release from Sep 13, Oakwood Premier OUE Singapore, a luxury serviced apartment in downtown Singapore announced that it has been awarded ‘Best Serviced Residence in Asia-Pacific’ for the second consecutive year at the Business Traveller Asia-Pacific Awards 2019.

Into its 28th year, the annual Business Traveller Asia-Pacific Awards recognises the best in travel and hospitality – providers that have gone the extra mile to create memorable travelling experiences. Winners are determined by the votes casted from over 30,000 Business Traveller Asia-Pacific’s readers in an online poll.

“This award is an affirmation of our consistent performance and commitment to be the best in class amongst luxury serviced apartments in Asia Pacific” shares Roy Liang, general manager of Oakwood Premier OUE Singapore.

“We are continuously pushing the frontiers of luxury serviced living, enhancing the guests’ experience at the property through guest-centric activities such as tours to local attractions and culinary classes by our Executive Chef as well as introducing experiential packages,” he added.

Situated within the mixed-use development OUE Downtown, Oakwood Premier OUE Singapore is an award-winning 268-unit serviced apartment offering the best of luxury living, style and design. The serviced apartment blends urban style with nature-inspired elements, the elegantly furnished and well-appointed studio, one- and two-bedroom apartments are designed to give an exclusive residence for the sophisticated traveller, tailored with all the luxuries of a hotel.

Oakwood Premier OUE Singapore offers a comprehensive range of services including regular housekeeping and concierge services, 24-hour customer service, as well as state-of-the-art facilities such as the Fitness Center and Outdoor Infinity Pool. The property also raises the bar for premium serviced apartments with an in-house restaurant SE7ENTH, bar and Oakwood Executive Club, all managed by an expert culinary team to complement the luxurious accommodation offering.

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