KUALA LUMPUR (Feb 7): YTL Hospitality REIT (YTL REIT) is acquiring Syeun Hotel in Ipoh, Perak, for RM55 million cash, as it looks to continuously acquire and invest in high-quality hospitality properties in Malaysia and internationally, with a view to providing long-term and sustainable income distribution to unitholders and achieving long-term growth in net asset value per unit.
Maybank Trustees Bhd, as the trustee for the REIT, entered into a sale and purchase agreement with the vendor, Syeun Hotel Bhd, to acquire the property. This was announced by Pintar Projek Sdn Bhd, the manager of YTL REIT, in a bourse filing on Wednesday.
Pintar Projek said the property will be renovated and proposed to reopen under the AC Hotels by Marriott brand, which the board believes will create value for YTL REIT. The property will then be leased under a variable rental arrangement, where YTL REIT will participate in the income to be generated from the property.
"In view of the strategic location and accessibility of the property, the board believes that prospects for the property are positive, and it is expected to provide a growing income stream from the lease of the property under a variable rental arrangement, and enhance the financial performance of YTL REIT and its subsidiaries," Pintar Projek said.
Barring any unforeseen circumstances, the proposed acquisition is expected to be completed during the first half of 2024.
YTL REIT boasts a total of 10 hotel properties in Malaysia, including hotel chains such as JW Marriott Hotel Kuala Lumpur, The Majestic Hotel Kuala Lumpur and The Ritz Carlton Hotel Kuala Lumpur.
At Wednesday's market close, YTL REIT units settled unchanged at RM1.17, giving the REIT a market capitalisation of RM1.99 billion.