SINGAPORE - Hiap Hoe has entered into a sale and purchase agreement to acquire the 224-room Aloft Perth hotel and an office building for A$100 million (S$99.2 million).
The seller is BAAC Pty Ltd, an affiliate of Australian manufacturing, building and construction company BGC (Australia) Pty Ltd.
"The directors believe the property presents a prime investment opportunity, with high occupancy levels and a diverse mix of blue-chip tenants," the company said in a statement before the market opened on Friday (Nov 1). "The property also provides an opportunity for the company to increase its recurrent income streams."
Located at 25-27 Rowe Avenue, Rivervale, Western Australia, the hotel is managed by Starwood Australia Hotels. The office building has 10,569 square metres of net lettable area.
The price was arrived at at a willing-buyer, willing-seller basis taking into account the independent valuation of the property and various commercial factors, and will be funded by a mix of internal resources and debt.
Hiap Hoe has paid A$11 million on Nov 1, and will pay the balance at the completion of sale. The completion of the agreement is subject to conditions such as the company obtaining the relevant approvals and agreements from the regulatory authorities of Australia, including the Foreign Investment Review Board of Australia.
Hiap Hoe said the acquisition does not require shareholder approval as it is in the company's ordinary course of business but "decided to disclose the acquisition to enhance the corporate disclosure standards of the company".
Outside of their shareholdings in the company, none of the directors or the controlling shareholders of the company has any direct or indirect interest in the acquisition.
Hiap Hoe entered into the agreement through wholly owned unit Meteorite Land (Rowe Avenue), as trustee for Meteorite Land (Rowe Avenue) Unit Trust holding the property. The incorporation of these two entities were also announced on Friday morning before market opening.
Hiap Hoe last closed on Thursday at $0.87.