Datapulse Technology said yesterday it is acquiring a 15 per cent stake in Holiday Inn Express Euljiro hotel in Seoul for 8.6 billion won (S$10.2 million), in a joint venture deal with Bizcentre Capital. Bizcentre Capital is a subsidiary of Plenitude, a Malaysia-listed investment holding company engaged in property development, property investment and hotel operations across Malaysia.
Datapulse's indirect subsidiary KPH Top and Bizcentre Capital will take a 15 per cent and 85 per cent stake respectively in Korea Investment Private Placement Business Hotel Real Estate Investment Trust (REF Trust), which owns the hotel, for a total of 59 billion won. REF Trust is a real estate fund wholly owned by the Military Mutual Aid Association, a retirement savings fund in South Korea holding the outstanding beneficiary certificates of the trust. The trust is a collective investment vehicle with Korean Investment Management as quality asset manager and KB Kookmin Bank as trustee.
Datapulse's acquisition costs comprise 4.1 billion won for its share of the purchase upon completion, 4.4 billion won for a proportionate corporate guarantee in connection with refinancing an existing loan, and 100 million won for its share of transaction costs. The acquisition will be fully funded by internal resources. The proposed investment is expected to be completed by June 21, 2019.
Suntec Real Estate Investment Trust (Suntec Reit) yesterday reported a slight rise in first-quarter distribution per unit to 2.434 cents from 2.433 cents a year ago.
Gross revenue for the three months ended March 31 declined 1.1 per cent from the year-ago period to $89.7 million due to lower convention revenue from Suntec Singapore and lower revenue from 177 Pacific Highway amid the weaker Australian dollar. This was partially offset by higher retail and office revenue from Suntec City.
Net property income slipped by 7.6 per cent to $58.2 million.
Suntec Reit had a committed occupancy rate of 98.9 per cent for its office portfolio and 97.4 per cent for its retail assets, as at March 31.
Distributable income rose 0.8 per cent year on year to $65.4 million. This included a capital distribution of $6.5 million, which was the same amount as the year-ago period.
The higher distributable income was mainly due to the continued strong performance of Suntec City, as well as better performance and an additional 25 per cent interest in Southgate Complex. But this was partially offset by higher financing costs and the weaker Australian dollar.