CDLHT buys Angsana Velavaru
Maldives Promotion House – CDL Hospitality Trusts (CDLHT) is acquiring Banyan Tree Holdings’ Angsana Velavaru resort in the Maldives for a total cost of US$72.4 million to capitalise on the strong hospitality prospects.
CDLHT is a stapled group from Singapore comprising CDL Hospitality Real Estate Investment Trust (H-Reit) and CDL Hospitality Business Trust.
The upmarket resort located in Dhaalu Atoll comprises 79 beachfront villas and 34 water villas. The remaining leasehold period for the property is about 35 years.
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.
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, according to an announcement by Banyan Tree Holdings.
“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.