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Far East buys Paramount Hotel, Shopping Centre

Kalpana Rashiwala The Business Times
Far East buys Paramount Hotel, Shopping Centre - hotels - commercial property


FAR East Organization has clinched Paramount Hotel and Shopping Centre along East Coast Road for S$214 million.



BT understands that Far East plans to keep the freehold asset as an investment property for recurring income although refurbishment is likely to be on the cards.


The deal involves a collective sale and will be subject to approval from the Strata Titles Board. Approval has been obtained from owners controlling over 90 per cent of share values and strata floor area in the asset.

Far East plans to manage the hotel. It is currently operated by YTC Corporation, which is selling the 229-room hotel. YTC also owns the Peninsula Excelsior Hotel at Coleman Street.

BT understands that YTC stands to receive about $167 million for the hotel, which translates to about $730,000 per room. The balance $47 million will be payable to the owners of the 95 strata shop units in the development. The ageing hotel and shops are housed in a four-storey podium and eight-storey tower block.

Far East was the highest of nearly 10 bidders that participated in the tender for the collective sale, which closed on Nov 23.


Source



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