CDL H-REIT acquires first Maldives resort

by Cheryl Tay

CDL Hospitality Real Estate Investment Trust (CDL H-REIT) has signed an agreement with Banyan Tree Holdings Ltd to buy the Angsana Velavaru resort (pictured) in Maldives for US$71.0 million (S$86.8 million).

The deal was carried out through Sanctuary Sands Maldives Pte Ltd, a subsidiary of CDL H-REIT's trustee DBS Trustee Ltd, reported The Business Times.

Meanwhile, the resort is 93.43 percent owned by Banyan Tree, through its unit Maldives Bay Pvt Ltd (MB).

The acquisition entails that MB enters into a lease agreement with Sanctuary Sands Maldives in order to lease back the property within a 10-year period, announced Banyan Tree Holdings. Moreover, MB will pay for the base rental and will be entitled to a portion of the gross operating profit, based on an agreed formula by both parties.

Vincent Yeo, CEO of M&C REIT Management, manager of CDL H-REIT, said, "Our first resort acquisition gives us the exposure in our portfolio to capitalise on this trend. This also marks the beginning of a new lessee relationship with Banyan Tree Holdings, a reputable player in the resort space with a proven track record."Cheryl Tay, Editor of CommericalGuru, wrote this story. To contact her about this or other stories, email cheryltay@allproperty.com.sg Related Stories:Asia Pacific hotel sector remains vibrant: C&W Onan Road hotel up for sale by tender Hospitality suites at National Stadium see strong demand

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