Far East Orchard Limited‘s (FEOrchard) hospitality arm, Far East Hospitality Holdings Pte Ltd (Far East Hospitality) has acquired 50% interests in a portfolio of property companies which own four hotel properties in Europe. This is a move that will boost income and expands FEOrchard‘s footprint in the hospitality ownership business into the European market.
Together with its joint venture partner Toga Group, Far East Hospitality will jointly acquire interests in a portfolio of companies from Toga Accommodation Fund. In addition, Far East Hospitality will purchase a 50% interest in a separate portfolio of companies from Toga Group (Toga Property Companies). TAF Property Companies holds three hotels, namely Adina Apartment Hotel Berlin Checkpoint Charlie, Adina Apartment Hotel Frankfurt Neue Oper, and Adina Apartment Hotel Copenhagen.
Toga Property Companies hold one hotel, the Adina Apartment Hotel Berlin Hauptbahnhof. The four hotels, located in Berlin and Frankfurt, Germany and Copenhagen, Denmark, have been independently valued with an aggregate valuation of approximately €107.1 million.
The hotels are currently operating under an umbrella brand of Adina Apartment Hotels‘ by Toga Far East Hotels (TFE Hotels), the joint venture between Far East Hospitality and Toga Group. TFE Hotels is one of the largest hospitality management platforms in Australia.
Commenting on the acquisitions, Mr Lucas Chow, FEOrchard‘s Group Chief Executive Officer and Managing Director, said: ‘We are delighted that FEOrchard has made its first asset acquisitions in Europe, continuing our expansion plans from the string of hospitality transactions in Australia last year. We believe that this transaction sends a strong signal of our capability to rapidly seize opportunities and leverage on the synergies offered by our joint venture partner, Toga Group.’
Source: Far East Orchard Limited