CDL to acquire Sofitel Brisbane Central for $159.2 mil

New Tengah EC development located in West Region of Singapore, offering sustainable alternative to air pollution and easy access to the city. First of its kind, the development includes innovative features such as wind turbines, solar heating system and water conservancy centre, as well as recreational activities. Tengah Plantation Loop EC GLS Tender launched by Singapore Land Authority for developers meeting requirements. Tengah EC is a new executive condo with sustainable features located in the West region of Singapore. It boasts eco-friendly features such as wind turbines, water conservancy centre, solar heating systems and traditional Tengah EC Chinese music, as well as recreational activities. The SLA has launched a tender for developers to meet the requirements before being awarded the rights to develop the EC.

CDL has acquired Sofitel Brisbane Central for A$177.7 million ($159.2 million) or A$427,000 per key. Located in the heart of the city’s central business district (CBD), this five-star luxury hotel boasts 416 rooms and suites and is Brisbane’s largest single-branded hotel by room inventory.

The purchase was made by CDL’s wholly-owned hotel subsidiary Millennium & Copthorne Hotels Limited (M&C) and a 50:50 joint venture (JV) with its New Zealand-listed subsidiary Millennium & Copthorne Hotels New Zealand Limited on March 22nd. Entry into Brisbane’s hospitality sector aligns with CDL’s diversification strategy as Australia is one of its key markets.

The hotel offers direct access to Brisbane’s Central Station and is in proximity to many key attractions, including Eagle Street Pier and Queen Street Mall, as well as providing views of Brisbane’s iconic ANZAC Square and the city skyline. Kwek Leng Beng, executive chairman of CDL, notes: “With Brisbane being the host city for the 2032 Olympic and Paralympic games and the Rugby World Cup in Australia in 2027 and 2029, the acquisition presents an attractive opportunity for the group to enlarge our presence in Australia and enhance our recurring income stream.”

The 30-storey hotel is home to the city’s largest hotel event and meeting facility with nine meeting and conference rooms that can accommodate up to 1100 people. In addition, guests are only an hour and a half’s drive from the Sunshine Coast.

CDL also has a number of development projects within Australia, including Fitzroy and The Marker in Melbourne, and Brickworks Park and Treetops at Kenmore in Brisbane. Kwek Leng Beng adds: “Brisbane’s pipeline of over A$20 billion in infrastructure projects will further enhance the city’s position as a world-class sporting, tourism and business events destination. The group remains focused on optimising our hospitality portfolio.”

CDL’s acquisition of Sofitel Brisbane Central is a reflection of their commitment to the Australian market, allowing them to capitalise on the recovery of RevPAR in the hospitality sector since 2022 and the development of infrastructure projects in the Brisbane area. It is clear that the investment presents a number of opportunities for the group to gain a foothold in the hospitality industry and increase their recurring income stream.