SINGAPORE (July 15): The managers of CDL Hospitality REIT and CDL Hospitality Business Trust says that the REIT’s trustee, DBS Trustee Limited, has completed its divestment to Gemini One Trust, Legend Quay Pte. Ltd. and Legend Commercial Trust for a total consideration of approximately $375.9 million. 

The divestment was first announced on Nov 21, 2019, which saw CDL, CDLHT, and CapitaLand leading a consortium to redevelop Liang Court site at Clarke Quay. 

The total cost of the divestment came up to some $5.5 million, which includes related costs in connection with the closure of the Novotel Singapore Clarke Quay, as well as the professional fees and other expenses in connection with the divestment.  

With the remaining amount of approximately $370.3 million, about $342.2 million will be used to fund the acquisition of W Singapore – Sentosa Cove hotel by paying down the short term borrowings. 

Some $1.4 million will be used to pay the professional fees and other expenses in connection with the forward purchase of the hotel to be developed as part of an integrated development. 

The remaining $26.8 million will be used to repay existing debt and/or to make distributions to Security Holders.

Units in CDLHT closed 1 cent higher, or 1.0% up, at $1.04 on Wednesday.