UOL in talks to buy S$515M stake in Hong Kong Hyatt Regency hotel
Singapore-listed UOL, part of the Wee family's business empire, is in discussions to acquire the combined 100 per cent stake held by New World Development and the Abu Dhabi Investment Authority in the Hyatt Regency Hong Kong, Tsim Sha Tsui. The deal, valued at HK$382 million (S$66 million), would se
Singapore-listed property group UOL is in discussions with Hong Kong's New World Development and the Abu Dhabi Investment Authority to purchase the 50 per cent stakes each holds in the Hyatt Regency Hong Kong, Tsim Sha Tsui, according to a Bloomberg report citing sources familiar with the matter. The potential acquisition, valued at HK$382 million (S$515 million), would give UOL full ownership of the 420-key hotel.
The hotel first opened in 1969 as the first Hyatt property outside the United States. It closed in 2006 and later reopened as Hyatt Regency Hong Kong, Tsim Sha Tsui. The establishment occupies part of a 64-storey skyscraper jointly developed by New World and the Urban Renewal Authority.
New World Development, controlled by Hong Kong billionaire Henry Cheng's family, is among the city's largest property developers. The firm has been under financial strain following years of weakness in property markets across mainland China and Hong Kong, and is currently the most indebted among its Hong Kong-listed peers, according to Reuters. The potential sale of its hotel stake is part of a broader strategy to reduce debt, sell assets and strengthen liquidity.
On Monday, New World said it had received approval from the Shanghai Stock Exchange to spin off and list its real estate investment trust, a move expected to generate 3.24 billion yuan (US$483.9 million) in net proceeds.
UOL is part of the Wee family's business empire, which also includes a stake in United Overseas Bank, Singapore's third-largest lender. The family comprises the heirs of the late banking and property tycoon Wee Cho Yaw, UOB's chairman emeritus. Forbes ranked the family sixth among Singapore's wealthiest individuals earlier this month, with a combined net worth of US$12 billion.
