Continue reading this on our app for a better experience

Open in App
Floating Button
Home News Company in the news

CDL Hospitality Trusts enters into another 10-year lease agreement with Banyan Tree for Angsana Velavaru

Khairani Afifi Noordin
Khairani Afifi Noordin • 2 min read
CDL Hospitality Trusts enters into another 10-year lease agreement with Banyan Tree for Angsana Velavaru
The lease structure provides downside protection for CDLHT. Photo: CDLHT
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

CDL Hospitality Trusts (CDLHT) J85

has announced that Sanctuary Sands Maldives, a wholly-owned subsidiary of CDL Hospitality REIT has entered into a new lease agreement with Maldives Bay, a subsidiary of Banyan Tree Holdings B58 for Angsana Velavaru. 

The existing lease in place with Maldives Bay expires on Jan 31, 2023. The terms of the new lease agreement are similar to the existing lease and will be for a term of 10 years commencing Feb 1, 2023. 

The rental formula and management fee terms under the new lease agreement are the same as the existing lease entered into between the parties on Jan 4, 2013. 

Under the new lease agreement, Sanctuary Sands Maldives will be entitled to receive rent payments equivalent to the resort’s gross operating profit minus management fees retained by Maldives Bay, subject to a minimum rent. 

Maldives Bay will pay Sanctuary Sands Maldives a top-up amount to make up for any shortfall in rent below the minimum rent for each year. The aggregate top-up amount for shortfalls in rent over the entire term is subject to a cap which is equivalent to the minimum rent level. 

The lease structure provides downside protection for CDLHT and incentivises Maldives Bay to maximise gross operating profit while allowing CDLHT to enjoy the potential upside, the company said in a statement. 

See also: AGV Group to delist on Oct 7

Shares in CDLHT closed 1 cent higher or 0.8% up on Dec 14 at $1.25. 

 

×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.