CDL H-Trusts to acquire second Maldives property

CDL Hospitality Trusts (CDL H-Trusts) will buy its second property in the Maldives for US$59.6 million (S$74.8 million), the trusts' managers said late Tuesday night.

It is acquiring Jumeirah Dhevanafushi, which is located at the southern edge of the Maldives archipelago in the Gaafu Alifu Atoll on the private island of Meradhoo.

The luxury resort property comprises 35 villas, with another two expected to be completed by the seller, Xanadu Holdings, next year. It has been valued at US$61 million by CBRE, a property consultancy.

For the first nine months of this year, the property has reached US$754 in revenue per available room, said Mr Vincent Yeo, chief executive officer of M&C REIT Management Limited, which manages CDL Hospitality Reit (CDL H-Reit). The Reit, together with CDL Hospitality Business Trust, makes up CDL H-Trusts.

"We believe that the Maldives will continue to benefit from the increased patronage from Asian travellers with a rapidly rising level of disposable income for leisure travel," he said in a press release.

"Our second Maldives resort acquisition, following that of the successful acquisition of Angsana Velavaru, is the execution of our strategy to capitalise on this trend and on the strong demand for Maldives generally."

Including acquisition and transaction fees of about US$1.4 million, the total cost of acquiring Jumeirah Dhevanafushi is estimated at about US$61 million. The purchase will be funded initially by debt and CDL H-Trusts' gearing will rise from 28.1 per cent to 30.6 per cent after the acquisition.