The Hotel Miramar closed for renovations last month
The latest commitment in a salvo of investments by Singapore’s Wee Hur Holdings was revealed on Monday when the company announced that it has invested in a fund managed by a unit of Sumitomo Mitsui Financing and Leasing which has purchased the Hotel Miramar.
Wee Hur has teamed with Aravest, a Singapore fund manager controlled by SMFL to acquire the hotel on Havelock Road for S$160 million ($122.5 million), the companies said in a joint statement. With both investors entering the hospitality market for the first time, the partners are teaming with Hilton to launch the property under the DoubleTree by Hilton brand following the recent closing of the acquisition.
“Our track record in development and construction, combined with Hilton’s operational expertise and Aravest’s investment vision, ensures that DoubleTree by Hilton Singapore Robertson Quay will set a new benchmark for hospitality in the area,” Chengyu Goh, chief executive of Wee Hur Holdings’ Wee Hur Property unit said in a statement.
The potential sale of the Miramar had been reported in July this year by the Business Times. The hotel investment follows a flurry of Wee Hur deal announcements in the past few weeks, including plans to develop an international school in Singapore, a top-ranking bid of nearly S$614 million ($473 million) for a northern Singapore residential site and a S$175 million bond sale.
12 Months to Reopening
Wee Hur says it plans to work with Aravest and Hilton to reopen the 344-room riverfront hotel in 2026 following a planned renovation of the property.
Wee Ping Goh, Chief Investment Officer, Wee Hur Holdings; Chief Executive Officer, Wee Hur Capital
Located along the Singapore River upstream from Clarke Quay and Boat Quay, the 1968-vintage hotel has over 41 years remaining on its leasehold tenure, with Wee Hur said to be taking a minority stake in the fund acquiring the property. The seller was a company named Lim Tjhun Seng, which was privately held by members of the Lim family, according to reporting by the Business Times.
“The acquisition of Hotel Miramar, together with Wee Hur as our trusted partner, marks Aravest’s first foray into the Singapore hospitality sector and reflects our high conviction in Singapore’s attractiveness as both a commercial and leisure destination,” Aravest CEO Moses Song said.
Before taking the leadership role at Aravest, Song had played a key role in the $270 million purchase of the former private funds unit ARA Asset Management from ESR last year by Sumitomo Mitsui Finance and Leasing Co and its Kenedix unit. SMFL bought out ESR’s stake in Kenedix last month to take full control of the Japanese asset manager.
Completed in 1970, the Hotel Miramar changed hands for S$465,100 ($356,827) per key at the reported compensation, with the revamped property set to introduce Hilton’s Doubletree brand to Singapore.
“Hilton is proud to collaborate with Aravest and Wee Hur on this milestone project, having extensive experience in hotel conversions in Singapore,” Maria Ariizumi, vice president for development with the Southeast Asia division of Hilton, said. “Rebranding this primely located property as DoubleTree by Hilton is another chance to show how Hilton helps owners efficiently refresh and reposition assets, while leveraging the power of Hilton’s brands and commercial engine.”
The deal brings Hilton’s Singapore pipeline to more than 500 rooms, according to the joint statement.
Wee Hur Rolls On
“This partnership reflects our commitment to working with like-minded partners to deliver high-quality developments that enhance Singapore’s hospitality landscape and create long-term value for all stakeholders,” Wee Hur’s Goh said.
The hotel commitment comes after Wee Hur said last week that, together with members of its controlling shareholders from the Goh family, it is investing in an international school in Singapore which it plans manage in alliance with Chinese school operator BE Education and the UK’s Wycombe Abbey.
On 31 October, Singapore’s Urban Redevelopment Authority said that Wee Hur, in tandem with its largest shareholder, GSC Holdings, had placed the top bid of nearly S$614 million ($473 million) for a residential development site on the city-state’s Upper Thomson Road.
In another milestone last week, Wee Hur notified the Singapore stock exchange that it had priced S$175 million of five year notes at a 4.8 percent coupon, and announced that it plans to sell a student housing project in South Australia into a new fund with committed capital target of A$57 million ($37.2 million).
