SINGAPORE (June 21): First Sponsor Group is acquiring the third to ninth floor of the Poortgebouw Hoog Catherijne, in Utrecht, the Netherlands, for 26.4 million euros ($40.8 million).

To be developed into two hotels totalling 320 rooms, Poortgebouw Hoog Catherijne is a newly constructed building with a total lettable floor area of 11,604 sqm. The hotels will be operated by Hampton by Hilton and Crowne Plaza or brands of a similar quality, according to First Sponsor.

Sited at Catharijne Esplanade 13, the property is connected to the Utrecht central station, the largest and busiest railway station which is also centrally located in the Netherlands.

First Sponsor believes the acquisition and the rental income from the leasing arrangement are beneficial to the group and will help to expand its recurring income base in the Netherlands.

On Tuesday, First Sponsor and its Dutch subsidiary, NL Amstel Development 16 BV, entered into the sale and purchase agreement with vendor Hoog Catharijne Mall of the Netherlands BV.

Incorporated in the Netherlands, Hoog Catharijne Mall is a wholly-owned subsidiary of Klépierre SA which is listed on the Euronext Paris and a major player in continental Europe’s retail property market with shopping centers in 57 cities and 16 countries.

The acquisition will be funded with drawdown of First Sponsor’s existing unsecured credit facilities.

Shares in First Sponsor closed at $1.32 on Tuesday.