CDL Hospitality Trust (CDLHT) has entered into an asset and business purchase agreement with Hotel Exe Limited, Plaza Properties (Holdings) and Plaza Retail (Holdings), to acquire Hotel Indigo Exeter and two retail units, according to an Oct 15 release.
Under the agreement, the proposed acquisition, which has a purchase consideration of GBP19.4 million ($33.2 million), is expected to be fully funded through debt.
CBRE Limited, as independent external valuer, has valued the property at GBP19.5 million on the basis of market value as at the valuation date of Sept 30, which is in line with the purchase price. The valuation includes the hotel and retail component at GBP15.5 million and GBP4.0 million, respectively.
According to the group, the property comprises a 104-room boutique hotel, with spa and gym facilities, as well as two retail units. The property is located at the entrance of the Princesshay Shopping Centre, and is in close proximity to the commercial district, major transport nodes and attractions.
Upon completion, the acquisition is expected to be accretive on stabilisation, reads the release.
Vincent Yeo, CEO of CDLHT’s managers, says: “We are delighted to acquire a high quality asset with brand new interiors in the best location in the heart of Exeter. This is a continuation of our strategy to pursue accretive acquisitions that augment our income streams. This acquisition also increases our exposure to the burgeoning lifestyle hotel market.”
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He adds: “We believe our stapled security holders will benefit from this opportune acquisition, especially at a point when the interest rate cycle is expected to turn.”
Shares in CDLHT closed 0.5 cents higher, or up 0.51%, at 98 cents on Oct 15.
