Hotel Ibis Novena Singapore, a property managed by Alpha Investment Partners has changed hands for approximately S$170 million.
Going by the media reports, the price for this freehold property works out to be nearly S$700,000 per key. This is around 3% of the net yield from the property.
Alpha Investment Partners have made a good profit from this sale having acquired the 241-room hotel for S$150 million back in 2013.
The property which is located along the intersection of the Irrawaddy Road and Balestier Road would continue to be managed by Accor.
There are reports doing around that the buyer is a company that has close ties with Mohammed Saiful Alam who is the owner of S Alam Group, the Bangladeshi conglomerate.
The group is involved in different sectors that include cement, consumer products, steel, agro business, transportation, energy, manufacturing, real estate and shipping.
CBRE Singapore is known to have brokered this deal and this was confirmed by Executive Director of Capital Markets for CBRE Mr Galven Tan but he declined to share further details about the deal when contacted by a leading media group.
This is the third hotel acquisition for Mr Alam in Singapore. Earlier in 2014 his group had acquired Hotel Grand Chancellor located along Belilios Road in a deal amounting to S$248 million.
The hotel has seen then been re-branded to its new name Hilton Garden Inn Singapore Serangoon.
The other property already in his group’s kitty is the Holiday Inn Express Singapore Serangoon located in Jalan Besar that was acquired little over a year ago.
Mr Alam’s group has other business interests in Singapore.
In 2016 he had acquired retail space of 27,179 sq ft for S$135 million at Centrium Square.
Going by the freehold strata area the price for this deal was calculated to be around S$4,967 psf.
Under this deal the group had acquired the first two levels in the property which stands on the Serangoon Road and is in close vicinity of Mustafa Centre.
Cockpit International Group had developed Ibis Novena. The group is controlled by late Teo Lay Swee’s family members.
The hotel had thrown its doors open in April 2011 but only few months into its operation the Kum family which owned the M&L Hospitality had acquired the property for S$118 million which translated to a price of S$490,000 per key.
The hotel was then sold to Alpha Investment Partners in the year 2013.
This isn’t the only hotel that is changing hands in Serangoon Road as there are media reports that early discussions are going on for the sale of The Claremont Hotel.
Experts who are closely watching this transaction believe it is expected to be priced shade below the S$70 million mark.
The hotel is expected to be picked up by an entity which has links to Satinder Garcha.
The 8-storey freehold property has 90 rooms. It located close to the junction near Owen Road and only few meters from Farrer Park MRT Station and in close vicinity of Centrium Square.
JLL has been the marketing agent for this sale and had launched an expression of interest for this property which closed in the middle of April. The agents are tight-lipped about the sale.
Mr Garcha’s entities already have three hotels in Singapore – Six Senses Maxwell, Six Senses Duxton and the Vagabond Club