CDL Hospitality Trusts buys Angsana Velavaru resort for US$71m

CDL Hospitality Trusts on Friday announced that it is buying the Angsana Velavaru resort in the Maldives from Banyan Tree Holdings for US$71 million (S$86.8 million).

This marks the trust’s first resort acquisition and a new geographic market segment.

As part of the sale and leaseback agreement, CDL Hospitality Real Estate Investment Trust will grant a lease for the resort to Banyan Tree Holdings for 10 years. The resort will continue to be operated under the Angsana brand name after the acquisition.

The 113-villa resort is set on its own private island in the southern part of the Maldives archipelago.

In a conference call, Vincent Yeo, CEO of M&C REIT Management and manager of CDL Hospitality Real Estate Investment Trust, said the acquisition falls in line with its strategy to acquire quality assets which can keep up with rising Asian influence and tourism, especially Chinese travellers.

He said tourists from China have been the number one source of visitors to the Maldives since 2010 and accounted for 64 per cent of Asian tourists for the first 11 months of 2012.

The acquisition is pending approval from the relevant authorities in Maldives.

Source : Channel NewsAsia – 4 Jan 2013

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