Khazanah unit to sell Andaz Singapore for S$475m, highest hotel price ever in Singapore

KUALA LUMPUR (Oct 9): M+S Pte Ltd, a 60:40 joint venture between Khazanah Nasional Bhd and Temasek Holdings Pte Ltd, is selling its wholly-owned subsidiary Ophir-Rochor Hotel Pte Ltd (ORH) to property developer Hoi Hup Realty Pte Ltd for S$475 million or S$1.39 million per key.

The proposed transaction marks the highest price ever achieved for a standalone hotel transaction in Singapore, and the third highest price achieved this year in Asia.

ORH is the developer and owner of Andaz Singapore — a 5-star luxury lifestyle hotel by Hyatt which opened its doors in 2017 and is the first Andaz hotel in Southeast Asia.

The 342-room hotel is part of the mixed-use development Duo and is situated in the Ophir-Rochor corridor in Singapore.

In a statement yesterday, M+S CEO Kemmy Tan said the company will continue to own and manage its assets at Marina One.

“The record price of S$475 million is testament to the quality of Andaz Singapore and the potential for growth of the hotel, in tandem with the continued evolution of the Bugis district as a vibrant extension of the existing central business district.

"Having assessed such a strong offer, we have determined that the proposed transaction will allow us to maximise returns to our shareholders, while handing over the reins to Hoi Hup to take the asset forward," she added.

Hoi Hup chairman Wong Swee Chun said it was attracted to the rarity of Andaz Singapore in terms of its high-quality luxury hotel offering, as well as its historic significance.

"We are excited by the strategic location of the hotel, with Andaz Singapore occupying a key node in the transformative Beach Road and Ophir-Rochor Corridor. We are confident that Andaz will fulfil its potential to become one of the leading luxury hotels in Singapore,” he added.

The sale is subject to customary closing conditions and JLL is the appointed advisor for the transaction.

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