Alpha Investment Partners has sold a 241-room hotel in Singapore’s Novena area for just under S$170 million.
The private equity division of Keppel Capital has already handed over the Ibis Novena Hotel to companies controlled by Bangladeshi tycoon, Mohammed Saiful Alam, chairman of Chitttagong-based conglomerage S Alam Group, in a deal which closed on Wednesday.
Through the off-market transaction, the buyer is acquiring the freehold property in Singapore’s heartland region for just over S$705,000 per room, as investors continue to scramble for income earning property assets in Singapore.
Alpha is selling the eight-year-old hotel approximately five years after purchasing the Ibis Novena in 2013. The private equity firm is said to be selling at a cap rate of around 3.0 percent with the transaction motivated by the impending end of one of Alpha’s property funds.
Following the acquisition, the property will continue to be managed by Accor Group, which owns the Ibis brand, under the existing hotel management agreement.
Alpha had purchased the Ibis Novena from the family of Michael Kum Soh Har, executive chairman of M&L Group and property developer Grandline International, for S$150 million in 2013, with the property appreciating in price by $20 million over the five year period.