Datapulse Technology is buying a 5 per cent stake in Bay Hotel Singapore for about $12.1 million, the disk producer said.

A wholly owned unit has formed a consortium with PAM Holdings I (BVI) to purchase the property from Fiesta Development and Bay Hotel & Resort for $235 million.

The Datapulse unit will hold 5 per cent of the consortium while PAM Holdings I (BVI) will hold the rest.

The purchase amount was based on an independent assessment by Knight Frank that valued the hotel at $238 million.

Datapulse said on Monday that the deal furthers its move into property and will allow it to "enhance shareholders' returns by receiving stable income and capital appreciation".

The hotel has a good location and the potential to increase the number of rooms, reposition and rebrand in its capacity as a freehold property, added Datapulse.

The consortium expects the deal to be completed within five weeks, having already paid a contract deposit of $23.5 million under the sales and purchase agreement.

PAM Holdings I (BVI) is owned equally by Breezy Path and Acquisition Pam (BVI).

Breezy Path is a subsidiary of Trade Dragon Global, a privately owned real estate investment adviser with assets under management of about US$850 million (S$1.16 billion) and offices in Hong Kong, Singapore and Shanghai.

Acquisition Pam (BVI) is a limited partnership managed by a private alternative investment firm with assets under management of about US$33 billion, and offices in the United States, Europe and Asia.

This follows a deal announced in April where the group took a 15 per cent stake in Seoul's Holiday Inn Express Euljiro hotel for 8.6 billion won (S$10 million).

Datapulse has lifted a trading halt initiated last Thursday. Its shares closed down 10 per cent to 27 cents yesterday.