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 Toga’s European properties.
Together with its joint venture partner Toga Group, Far East Hospitality will jointly acquire interests in a portfolio of companies from Toga Accommodation Fund (TAF) (TAF Property Companies).
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 (AUD$154 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.
“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,” said FEOrchard‘s Group Chief Executive Officer and Managing Director, Lucas Chow.
“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,” he said.
The purchases of the European hotels came hot on the heels of the joint venture TFE Hotels’ recent acquisitions of two office buildings in Sydney and Brisbane for hotel conversion in the last two months. One is a 13-level office property at 280 George Street in the Sydney central business district, and the other is a heritage-listed building in Brisbane‘s CBD at 171 George Street,
TFE Hotels said it continues to “actively pursue growth opportunities across Australia through both the hospitality management and ownership businesses”.
“The acquisition of these four hotels in Germany and Denmark will further strengthen our foothold in Europe and sets the platform for us to pursue more opportunities for the Group in the future,” said Far East Hospitality CEO, Arthur Kiong.
“We are optimistic of Europe‘s ability to attract tourist arrivals globally as Europe remains the world‘s largest tourism region.
“Our European properties will stand to benefit from the growing optimism of the recovering European economy.
“Together with the recent property acquisitions in Australia by our joint venture, TFE Hotels, Far East Hospitality is on a trail to create new growth platforms to transition into a leading regional player.
“These acquisitions in Europe and Australia mark our strong partnership with our joint venture partner, Toga Group, as we celebrate our one year anniversary this month and we believe there will be more of such opportunities ahead,” he said.