Datapulse Technology will acquire a 5 per cent stake in Bay Hotel Singapore for about S$12.1 million, the disc producer said in a Singapore Exchange filing on Monday night.
Its wholly owned subsidiary, Datapulse Investment Pte Ltd (DIPL), has formed a consortium with PAM Holdings I (BVI) Ltd to purchase the hotel from Fiesta Development Pte Ltd and Bay Hotel & Resort Pte Ltd for S$235 million.
DIPL will hold a 5 per cent stake in the consortium – PAM Holdings II (BVI) Ltd, while PAM Holdings I (BVI) will hold the remaining 95 per cent.
The deal amount was based on independent assessment by Knight Frank which valued the hotel at S$238 million.
Datapulse said the deal furthers the group’s property business push and will enable it to “enhance shareholders’ returns by receiving stable income and capital appreciation”.
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The hotel has a good location and potential to increase the number of rooms, reposition and rebrand in its capacity as a freehold property, added Datapulse.
The consortium has paid a contract deposit of S$23.5 million under the sales and purchase agreement, and expects the deal to be completed within five weeks after Datapulse’s announcement on Monday.
Datapulse said it was introduced to the proposed investment by an international real estate consultancy and brokerage firm.
Fiesta Development Pte Ltd and Bay Hotel & Resort Pte Ltd are owned by Chin Bay Ching and Tjia Mui Kui.
PAM Holdings I (BVI) Ltd is owned equally by Breezy Path Limited and Acquisition Pam (BVI) LP.
Breezy Path Ltd is a subsidiary of Trade Dragon Global Ltd, an independent and privately owned real estate investment adviser with assets under management (AUM) amounting to about US$850 million, and offices in Hong Kong, Singapore and Shanghai.
Acquisition Pam (BVI) LP is a limited partnership managed by a private alternative investment firm with AUM of about US$33 billion, and offices in the US, Europe and Asia.
This follows a deal announced in April where the group took a 15 per cent stake in Seoul’s Holiday Inn Express Euljiro hotel for 8.6 billion won (S$10.2 million).
Following the announcement, Datapulse has lifted the trading halt initiated on July 4. Its shares had closed up 25 per cent or S$0.06 at S$0.30 on July 4.