JDH Capital is also transforming the former Vibe Hotel at Rushcutters Bay, which it bought for $120 million, into luxury apartments.
His pending acquisition of the five-star freehold Sir Stamford Circular Quay at 93-97 Macquarie Street includes the heritage-listed former Department of Health sandstone building at the corner of Albert and Macquarie Streets.
In a statement to the Singapore Stock Exchange, Stamford Land said the sale price was $120.5 million above its most recent valuation of the company of $90 million as of March 31.
Stamford Land had tried to offload Sir Stamford and its other Australian and New Zealand hotels as a $1bn portfolio offering last year, but abandoned the sale and focused on rebuilding the Sydney hotel, as well as the Stamford. Brisbane Square.
Sir Stamford’s redevelopment into apartments at a cost of $380 million was due to start next year and would take three years. Singaporeans had obtained phase one approval for redevelopment of the property into residential units and were expected to complete phase two, which incorporated a design competition, by January.
Explaining its decision to sell the hotel, Stamford Land said the net cash the company would receive from the sale was more than 76 percent higher than from the refurbishment.
The divestment, brokered by JLL, will leave Stamford Land with ownership of five hotels in Australia and one in New Zealand, offering around 1,700 rooms.
The company was hit hard by the pandemic as hotel revenue dried up due to government restrictions and closures. Revenue and profit recovered strongly in the year to March 2022.
In February, it raised $248 million through a rights issue “to address the challenges” still facing the hotel industry.
Mr. Ow, who owns 41.7 per cent of Stamford Land, said in the company’s 2022 annual report that “the hospitality industry will find it difficult to return to pre-pandemic levels of performance anytime soon.” .