CEO of M+S, Kemmy Tan taking about the deal said that the price of $475 million, the potential that the hotel has with the transformation of Bugis District which has evolved into an important extension for Singapore’s CBD.
According to him this sale would allow them to increase returns for their shareholders. He concluded saying that Hoi Hup which is an established brand and shall take the property to greater heights.
The twin-tower mixed-use development, Duo Tower is a 60:40 joint venture between Khazanah Nasional, the sovereign wealth fund from Malaysia and Temasek Holdings, investment firm from Singapore.
Apart from Andaz, the development also has 570,000 sq ft of Grade-A category commercial space spread between levels 4 and 23.
There is also a retail component of 56,000 square feet on Basement 3 and Level 1 known as Duo Galleria. Duo Residences, the other component in the development has 660 residential units spread across 49 floors.
In the month of July M+S has confirmed its decision of selling the retail areas and the office component in the project for $1.575 billion. Gaw Capital Partners, the private equity firm from Hong Kong and Allianz Real Estate had bought these components paying $2,570 per sq ft for the NLA (net lettable area).
The 99-year leasehold site over which the Duo development has come up has 92 years left on its tenure.
After this deal M+S shall continue to own and manage Marina Bay Marina One Singapore. This asset comprises of 1,042 luxury apartments, Grade A office space and retail space totalling 1.88 million sq ft of space.