Singapore's Hiap Hoe—a regional real estate group with a portfolio of hospitality, retail, commercial and residential assets—is set to acquire the 224-room Aloft Perth hotel and an office building from BAAC Pty Ltd., an affiliate of Australian manufacturing, building and construction company BGC (Australia) Pty Ltd.
"The directors believe the property presents a prime investment opportunity, with high occupancy levels and a diverse mix of blue-chip tenants," the company said in a statement. "The property also provides an opportunity for the company to increase its recurrent income streams."
The property, managed by Starwood Australia Hotels, will change hands for AUD$100 million. The price was reportedly reached on a willing-buyer, willing-seller basis, and took into account the independent valuation of the property and various commercial factors. The deal will be funded by a mix of internal resources and debt.
Hiap Hoe has reportedly already paid AUD$11 million and will pay the balance at the completion of sale, which is subject to conditions such as the company obtaining the relevant approvals and agreements from the regulatory authorities of Australia, including the Foreign Investment Review Board of Australia.
The company entered into the agreement through wholly owned unit Meteorite Land (Rowe Avenue), as trustee for Meteorite Land (Rowe Avenue) Unit Trust holding the property.