In May, Singapore-based Frasers Hospitality Real Estate Investment Trust announced that it would purchase Germany's Maritim Hotel Dresden at a total cost of €58.4 million. Today, the deal was closed—for an impressive €62.5 million, not including the acquisition fee due the REIT manager. The purchase is notable as Frasers Hospitality Trust's first hotel asset in Germany, as well as its first purchase from a third party.
Maritim Hotel Dresden is a freehold, 328-room hotel in the eastern German state of Saxony. The property is close to the Dresden International Congress Centre, the trust said, boosting the property's value as a business-focused hotel.
The cost will be funded by the proceeds from the issuance of €62.5 million fixed-rate subordinated perpetual securities in the REIT. According to the REIT manager, the acquisition fee will be paid in the form of stapled securities in Frasers Hospitality Trust.
DBS Bank is the sole global coordinator and issue-manager for the IPO of the stapled securities in Frasers Hospitality Trust. DBS Bank and Morgan Stanley Asia, Standard Chartered Securities and United Overseas Bank are the joint book-runners and underwriters for the offering.
Source: The Business Times