Malaysia’s Starhill Real Estate Investment Trust has signed agreements to purchase three hotels from the Marriott hotel group in Australia for A$415m ($410.81m).
The assets include the 563-room Sydney Harbour Marriott Hotel, the 267-room Brisbane Marriott Hotel and the 186-room Melbourne Marriott Hotel .
Upon completion, the acquisition is expected to widen the real estate investment trust’s portfolio to about MYR3bn ($943m) from the current MYR1.58bn ($497m).
Starhill, managed by Malaysia-based YTL , said more than half of its property value will be thereafter constituted by its hotel assets in Australia and Japan.
The acquisition, which is subject to the relevant regulatory approvals, will generate stable fixed lease rentals arising from the company’s existing property portfolio and variable income from the three Marriott hotels, and is set to increase the potential for distribution per unit growth and variations.
It will allow Starhill to participate in the real estate market in Australia and enable it to geographically diversify its asset base.
The Sydney Harbour Marriott Hotel, Brisbane Marriott Hotel and Melbourne Marriott Hotel occupy site areas of 33195.8ft², 16490.3ft² and 17609.7ft² respectively.
Image: The acquisition of the three Marriott properties in Australia will widen Starhill’s portfolio to about MYR3bn ($943m). Photo: Starhill