Far East Orchard – a unit of Far East Organization, Singapore’s largest privately held developer by assets – said on Monday it planned to buy Straits Trading Co’s hospitality management business and stakes in the company’s hotel assets, Dow Jones Newswires reported.
Far East Orchard said it signed a non-binding memorandum of understanding with Straits Trading for the proposal, which also involves potentially acquiring 50 per cent stakes in three of Straits Trading’s hotels in Australia.
The deal, if successful, would allow Far East Orchard to expand its hospitality management business into markets like China, Australia and New Zealand, boosting its portfolio to more than 30 hotels and serviced apartments and over 6,000 rooms. The company would also gain trademark rights to the “Rendezvous” and “Marque” brands.
Far East Orchard didn’t provide a potential value or timeline for the proposal, which it is still studying. Any definitive agreement for the planned acquisitions would only be signed after the end of this year, it added.
Separately on Monday, Far East Hospitality Trust, backed by Far East Organization, said it planned to acquire leases for Straits Trading Co’s hotel and retail assets in Singapore.
Under the proposal, Far East Hospitality’s real estate investment trust would acquire leases for Rendezvous Grand Hotel and Rendezvous Gallery. The trust didn’t provide a potential value or timeline for the proposed purchase.
Source : Today – 26 Nov 2012