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CDL Hospitality TrustS
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(1) The total acquisition cost (including transaction expenses) is approximately US$72.4 million.
(2) Based on an exchange rate of US$1 = S$1.2224 as at 27 December 2012.
ABOUT H-REIT
H-REIT is the frst hotel real estate investment trust in
Singapore established with the principal investment
strategy of investing in a portfolio of hospitality and/
or hospitality-related real estate assets.
H-REIT has a portfolio size of S$2.0 billion as at 31
December 2012 with a total of 4,307 hotel rooms in
the Asia Pacifc, comprising six hotel properties and
a retail property in Singapore, fve hotel properties in
Australia and one hotel property in New Zealand. The
properties in Singapore comprise Orchard Hotel, Grand
Copthorne Waterfront Hotel, M Hotel, Copthorne
King’s Hotel, Studio M Hotel and Novotel Singapore
Clarke Quay (collectively, the “Singapore Hotels” with
an aggregate of 2,716 rooms) as well as Orchard Hotel
Shopping Arcade, a retail arcade adjoining Orchard
Hotel. The hotel properties in Australia comprise
Novotel Brisbane, Mercure Brisbane, Ibis Brisbane,
Mercure Perth and Ibis Perth (collectively, the
“Australia Hotels” with an aggregate of 1,139 rooms).
The hotel property in New Zealand, Rendezvous Grand
Hotel Auckland, adds 452 rooms to H-REIT’s portfolio.
On 31 January 2013, H-REIT successfully completed
the acquisition of the 113-villa Angsana Velavaru
in the Maldives for a purchase consideration of
US$71.0 million (1) (approximately S$86.8 million) (2) .
This marks its frst resort acquisition and maiden foray
into the Maldives. With this addition, H-REIT’s portfolio
size has grown to S$2.1 billion, with 4,420 hotel/resort
rooms in the Asia Pacifc region.
H-REIT’s portfolio of quality hotel/resort and hotel-
related assets in Singapore, Australia, New Zealand
and Maldives are largely marketed as “superior” and/
or 5-star hotels/resorts. The substantial value of its
assets are sited in central locations within Singapore.
Aside from the Maldivian asset, all other hotels are well
located within key gateway cities.
All the properties, with the exception of Orchard
Hotel Shopping Arcade, have been leased to master
lessees on long-term leases. Orchard Hotel Shopping
Arcade is leased directly to tenants by H-REIT.
H-Reit’s Strategy
The principal investment strategy of M&C REIT
Management Limited, as manager of H-REIT (the
“H-REIT Manager ”), is to invest in a diversifed
portfolio of income-producing real estate which
is primarily used for hospitality and/or hospitality
related purposes. The investment strategy envisages
investments globally, with emphasis in the Asia Pacifc
region. Such investments may be by way of direct
acquisition and ownership of properties by H-REIT
or may be efected indirectly through the acquisition
and ownership of companies or other legal entities
which primary purpose is to hold or own real estate
and real estate-related assets which are used for
hospitality and hospitality-related purposes.
Generally, investments will be made where such
investments are considered to be value-enhancing or
yield-accretive, and feasible in the light of regulatory,
commercial, political and other relevant considerations.
The H-REIT Manager’s objectives are to maximise the
rate of return for the holders of H-REIT units and to
make regular distributions. The H-REIT Manager plans to
achieve these objectives through the following strategies:
Acquisition Growth Strategy
The H-REIT Manager will continue to pursue
opportunities for asset acquisitions that would be
value-enhancing or yield-accretive. In evaluating
new acquisition opportunities, the H-REIT Manager
may consider the need for the diversifcation of the
portfolio by geography and asset profle. Potential
sources of acquisitions are likely to arise from:
• H-REIT’s relationship with Millennium & Copthorne
Hotels plc (“M&C”), an international hotel owner
and operator listed on the London Stock Exchange
with a market capitalisation of approximately £1.8
billion as at 1 March 2013. H-REIT intends to leverage
on M&C’s experience, market reach and network of
contacts in the global hotel and hospitality sector
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The Restaurant, Novotel Brisbane