The properties, which were owned by Singapore-based CapitaLand, which is seeking to divest its non-core assets, consist of three hotels. The properties are listed as four- and five-star facilities. The first is the 359-key Yangon Equatorial in Myanmar, Vietnam. The second is the 322-key Mertius Westlake in Hanoi, Vietnam. The third is the 328-room Sheraton Suzhou in China.
"The challenge we faced was to structure a transaction that enabled CapitaLand to maximize the capital invested in emerging markets," said Michael Cowan, senior vice president, Jones Lang LaSalle Hotels. "We were able to financially engineer a solution that met Hotel Plaza's investment guidelines, which will enable CapitaLand to participate in the improved performance of the hotels over the next five years."
Executive vice president Antony Karp, Jones Lang LaSalle Hotels, adds, "This transaction was the first of a number of structured hotel transactions underway in the region and represents the growing trend of divestment and acquisition of hotel property in Asia."
Hotel Plaza is planning further expansion throughout Asia. The company is a subsidiary of United Overseas Land Limited, and has been acquiring properties from Australia to Singapore since 1993. Some of its acquisitions over the last few years have included: 1,404 rooms in Australia with the Parkroyal Darling Harbour, Parkroyal Parramatta, Landmark Parkroyal and the Sheraton Perth Hotel; hotels in Kuala Lumpurand Penang; and opened its flagship, the Plaza Parkroyal in Singapore.
The company's purchase of CapitaLand's properties gives it a piece of what was thelargest listed property company in South East Asia. CapitaLand earned the superlative when it was formed in July 2000 as the product of a merger between Pidemco Land Limited and Singapore-listed DBS Land Limited.
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