SINGAPORE - TEE Land has teamed up with Peter & Jan Clark to acquire a hotel in Sydney, Australia.
The joint venture will be 90 per cent held by TEE Hospitality, a unit of the mainboard listed company, with the remaining 10 per cent held by Clark, which is part of Australian-based Lancemore group, with more than 25 years' experience in hospitality and conference venues.
The joint venture today sealed a deal with ASII to acquire an existing 120 rooms, three-star hotel.
It comes with facilities including meeting rooms, restaurant and bar, and on-site parking sited over 5,150 square metres.
The purchase price is A$23.9 million.
The acquisition is part of TEE's strategy to build up a portfolio of recurring income generating assets in developed markets such as Australia and New Zealand that provide short to mid-term accommodation to end users.
In addition, the hotel is located in a "R4 High Density Residential" zone and possesses future redevelopment opportunity.
TEE will finance its share of purchase by internal funds and bank borrowings.