SINGAPORE - CDL Hospitality Trusts will sell Novotel Singapore Clarke Quay, part of a Liang Court site for redevelopment, for $375.9 million and make an up-to-$475 million forward purchase of a new hotel that will be part of the new integrated development.
CDLHT will get about $369.3 million in net proceeds from the sale, which will be potentially used for the repayment of existing debt, distributions to security holders and funding future acquisitions, including the W Hotel Acquisition. It will be paid for in cash over four tranches, and funded through debt financing, with the actual method of funding to be determined closer to the completion when payment is due.
The consortium buying Novotel has plans for an integrated development on the Liang Court site, and the new hotel will be a part of that. CDLHT will buy it with internal resources, potentially including proceeds from Novotel's sale and debt financing.All the deals are subject to various conditions, including approval from CDLHT's stapled securities holders and the relevant authorities.
"Through the W Hotel and the new hotel, CDLHT will also benefit from continued long-term exposure to Singapore, which is the fifth most visited city in the world and attracts both leisure and business travel, given its status as an international financial centre and renowned MICE destination," they added.
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