For a total cost of US$72.4 million to capitalise on the strong hospitality prospects, CDL Hospitality Trusts (CDLHT), a stapled group in Singapore comprising of CDL Hospitality Real Estate Investment Trust (H-Reit) and CDL Hospitality Business Trust, is acquiring Banyan Tree Holdings’ Angsana Velavaru resort in the Maldives.
With about a leasehold period of 35 years remaining for the property, the upper market resort property comprises of 79 beachfront villas and 34 water villas and is located in Dhaalu Atoll, the southern part of the Maldives archipelago.
A sale and purchase agreement has been signed between Sanctuary Sands Maldives, as trustee of H-Reit, and Maldives Bay (MB), which is 93.43 per cent owned by Banyan Tree.
Banyan Tree Holdings announced that as part of the sale, MB has concurrently entered into a lease agreement with Sanctuary Sands Maldives to lease back the property for a period of 10 years. MB will pay a base rental and is entitled to a percentage of the gross operating profit based on an agreed formula by both parties.
“Our first resort acquisition gives us the exposure in our portfolio to capitalise on this trend. This also marks the beginning of a new lessee relationship with Banyan Tree Holdings, a reputable player in the resort space with a proven track record,” said Vincent Yeo, CEO of M&C REIT Management, the manager of CDL H-REIT.