Frasers Hospitality REIT completes Maritim Hotel Dresden purchase

Maritim Dresden

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.

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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
 

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