CDL Hospitality Trusts (CDLHT) has completed the sale of two hotels in Australia – Mercure Brisbane and Ibis Brisbane – to an independent third party buyer, revealed an SGX filing on Thursday (11 January).
Both properties were sold for a total of about A$77 million (approx. S$79.6 million). This represents an attractive exit yield of 5.3 percent, a 10 percent premium over their A$70 million collective valuation by JLL last month, and a 43.4 percent premium over their original overall purchase price of A$53.7 million in February 2010.
The 194-room Mercure Brisbane and the 218-unit Ibis Brisbane are both situated in the city’s central business district. They are also interlinked in the basement, and stands on a freehold land with a single title.
Aside from offering scenic views over Brisbane River, the properties are located opposite the Performing Arts Complex Centre as well as Brisbane Convention and Exhibition Centre.
Following the divestment, CDL Hospitality Trusts currently owns a retail mall as well as two resorts and 15 hotels with a total of 5,002 rooms.
Singapore-listed CDLHT is a stapled group comprising CDL Hospitality Real Estate Investment Trust (H-REIT) and CDL Hospitality Business Trust (HBT).
This article was edited by Keshia Faculin.