As per media reports RB Capital is conducting due diligence exclusively with respect to the Andaz Hotel Singapore as it plans to acquire 342 room hotel which is part of the Duo Project.
Located at a mixed development in Beach Road, the hotel is occupying upper levels at the 39-storey building.
It is part of a JV M+S Pte Ltd where Singapore’s Temasek Holdings and Malaysia’s Khazanah Nasional have a 40:60 share hold.
There has been news floating around in the market that RB Capital could sit down for negotiations in its bid to acquire the hotel at an estimated price between S$470 and $480 million.
At this price the average price of a room would be around the S$1.4 million mark. As far as the deal for retail and office space in Duo is concerned that would be taken later.
People in the know of the developments said that multiple parties are likely to initiate due diligence before submitting their offers and M+S will then be in a better position to choose a buyer. M+S has refused to release a statement on this for the moment.
Andaz Hotel Singapore which was inaugurated in 2017 is yet to see stability in its operations. As per reports the rooms are priced at an average rate of mid-S$300 per night.
The standard rooms in the hotel are 38 sqm in size while the suites are between 76 and 152 sqm. There are a number of bars and restaurants at this hotel which occupies Level 24 and above in the building.
On Level 3 the hotel has ballrooms as well as meeting rooms. From Level 4 to Level 23 there are offices in this building.
Hyatt Group which also has another property at the Scotts Road currently manages Andaz Hotel.
RB Capital already has three hotels in its kitty in Singapore which include Holiday Inn Express Clarke Quay, InterContinental Singapore Robertson Quay and Park Hotel Farrer Park and this will be the fourth hotel if they are able to successfully acquire.
There are close to 1000 rooms across the three hotels that they own at the moment.
Kishin RK set up RB Capital in 2016 along with Royal Holdings which is managed by his father Raj Kumar Hiranandani. RB also owns riverfront F&B strip The Quayside which is close to InterContinental Robertson Quay apart from a large portfolio of retail units across Singapore.
The father and son are also owners of North Bridge Road’s EFG Bank Building along with the Raffles Place’s RB Capital Building.
Other properties owned by the include Kuala Lumpur’s 33 Jalan Sultan Ismail. If they are able to acquire of Andaz Singapore this will be a huge addition to their portfolio as they would have acquired mixed development project in Duo, an area that has been booming over the last few years.
The other tower that is a part of the Duo project houses residential apartments named Duo Residences.
The 49-storey tower has 660 units and according to last reports most of them have been sold. Duo Galleria the retail component of the development is spread over 56,000 sq ft and occupies Level 1 along with Basement 3.
The 99-year leasehold site has little more than 91 years left on its tenure with the lease period having started in 2011.
The EOI (expression of interest) exercise for the retail, office and hotel part of the project closed in November 2018. A second closing ended in December where candidates to initiate due diligence were identified before the bid for the project is finalized.
It has been learned that there have been multiple bids for the hotel component and RB Capital was shortlisted to initiate the due diligence process.
There has been news floating in that CapitaLand Group is planning to bid for the retail and office space in the tower and doing so with their partners JP Morgan.
Gaw Capital Partners from Hong Kong are also known to have shown their interest in this. Others who have shown interest in this include M&G who are said to have dropped out and ARA Asset Management.
Goodwin and Kenneth Gaw the two brothers who set up Gaw Capital Partners already own two properties Bencoolen Street/Middle Road’s Hotel G and in Selegie Road’s PoMo which are close to Duo project.
They also acquired Robinson 77 last month for S$710 million.