Far East Orchard looks to expand beyond S'pare
lt inks non-binding MOU to buy Straits Trading's hospitality management biz
IN A bid to expand its hospi
tality business beyond Sin
gapore, Far East Orchard
Rendezvous Studio Hotel Perth Centrai, Rendezvous Grand Hotel Melbourne and Rendezvous Hotel Perth.
STC will bave the right to subscribe up to 20 per cent of the share capitai of the enlarged hospitality management company of
Separately, Far East Hos pitality Trust (Far East H-Trust), Astor Properties, and STC have entered a non-binding MOU to ac quire STC's Rendezvous Grand Hotel Singapore and its retail component, Ren dezvous Gallery Singapore. ln addition, Far East Or
Spreading wings :FEOrchard will also be looking to acquire a 50% interest in three of Straits Trading's hote[s in Australia. PHOTO: RENDEZVOUS GRAND HOTEL
Limited (FEOrchard) has entered into a non-binding memorandum of under standing with The Straits Trading Cornpany Limited (STC) to acquire STC's en tire hospitality manage ment business.
Under the deal, FEOr chard will also be looking to acquire a 50 per cent in terest in three of STC's ho tels in Australia, namely
Assuming the transac-· tions follow through, the ex paJ1ded portfolio will con sist of more than 30 hotels and service residences with more than 6,000 rooms un der management, with a presence across Australia, New Zealand, China, Malay sia and Singapore, said FE Orchard's group CEO and managing director, Lucas Chow.
ganization (FEO) is explor
ing the proposed acquisi
tion of the reversionary in terest for the remaining leasehold period in the property.
Conditional upon the completion of the transac tions, Far East H-Trust has also entered into a separate non-binding MOU with FEO to grant a master lease of the hotel component to the
sponsor as rnaster lessee
under a master lease agree
Rendezvous G rand Ho tel Singapore is a 4.5 star hotel with 298 rooms. Ren dezvous Gallery Singapore, the hoteJ's revamped retail wing, has three levels of re tail space dedicated to din ing.
The proposed transac tions are not expected to have a materia!impact on
Far East Hospitality Trust's
financial performance for
the fiscal year ending Dee
Straits Trading called for a halt in the trading of its shares last Saturday, over a week after it posted a Q3 net loss of $4.1 mil lion. For the nine months ended Sept 30, 2012, it made a net loss of $15.7 million.
It said the poor numbers
were due mainly to net loss
es from its resources and hospitality operations. even though it earned a profit
.from its property opera
Straits Trad.ing shares
closed at $3.20 on Friday.
Far East H-Trust ended yes
terday down half a cent at
or STC makes generai offer for WBL Corp, Page 10