YTL Hospitality Real Estate Investment Trust (REIT) has announced the acquisition of Syuen Hotel in Ipoh, Perak, Malaysia.
The RM55m purchase price for the acquisition of the property will be paid in cash.
This deal has been signed by Maybank Trustees, on behalf of YTL REIT.
Funding for both the purchase price and associated expenses will come from a combination of borrowing and internal funds.
This purchase price was determined through negotiations, considering the market value of the property, which is RM58m ascribed by an independent valuer.
The 4,539m² Syuen Hotel is a former four-star property that ceased operations in May 2020.
The 13-storey building, which features 290 rooms, will be renovated and rebranded under the AC Hotels by Marriott brand.
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This property will be leased under a variable rental arrangement.
The property being acquired also includes a leasehold land parcel, all plant machinery, equipment (generators, air conditioners, etc), and furnishings.
YTL REIT board of directors said: “Having considered all aspects of the Proposed Acquisition and after careful deliberation, is of the view that the Proposed Acquisition is in the best interests of YTL REIT and its unitholders.”
The hotel is located near attractions such as Panglima Kinta Mosque, Birch Memorial Clock Tower, Dataran Ipoh and Yum Yum, among others.
YTL-REIT expects the hotel’s location to boost its Malaysian portfolio, which includes JW Marriott Hotel Kuala Lumpur, The Ritz-Carlton, Kuala Lumpur, The Residences at The Ritz-Carlton, Kuala Lumpur, and more.