City Developments (CDL) announced on July 4 that it has acquired the Nine Tree Premier Hotel Myeongdong II in Seoul from Shinhan Nine Tree Real Estate Investment Trust for KRW 140 billion ($143.9 million) or KRW 343 million ($353,000) per key.
In February 2022, CDL completed the divestment of the Millenium Seoul Hilton for the equivalent of $1.26 billion or at a premium $964 million to book value as part of its asset recycling strategy and to “unlock latent asset values”.
The Nine Tree Premier Hotel is relatively new, and opened in 2017. The freehold 17-storey hotel comprises 408 rooms.
CDL says the hotel is “well placed to benefit from the positive market recovery momentum”.
Kwek Leng Beng, executive chairman, CDL says: “Our Group has over two decades of investment experience in South Korea, having entered the hospitality market with the acquisition of Millennium Hilton Seoul in 1999. Since divesting the property and its adjoining land site in February 2022, we have been actively seeking new opportunities to reinvest in Korea.”
