Hiap Hoe to acquire Tengah EC & Great Eastern Motor Lodge in Western Australia for A$40 mil

It is expected to be completed within the fourth quarter of 2021, subject to the fulfilment of conditions.Tengah EC

Hiap Hoe Limited has announced that its proposed acquisition of the Great Eastern Motor Lodge in Rivervale, Western Australia is in the works. The purchase consideration of A$40 million ($35.87 million) was agreed upon with the S&C Christie Family Trust on Dec 19.

The freehold site spans 11,892 sqm (128,000 sq ft) and contains 198 rooms with 180 parking spaces around the area. Located along the main road, the Great Eastern Highway, it is convenient for travelers looking to get to and from the Perth Airport’s domestic and international terminals, or into the city’s central business district.

Benefiting from the abundance of transport connections, the proposed acquisition presents a great investment opportunity with potential to increase recurrent income. The consideration is to be funded through a combination of resources and debt, with A$4 million already paid. The transaction is expected to be finalised in the fourth quarter of 2021, contingent on the fulfilment of conditions.

The property serves as a focal point for the inner-city suburb Rivervale, which is undergoing a major regeneration with plans for multiple residential, commercial and lifestyle developments. Tengah EC is thus an opportunity for entrepreneurs and investors to take advantage of the high occupancy rates for potential future income streams.

Hiap Hoe specializes in the hospitality industry and this is set to be the first acquisition made towards the company’s aim of expanding the corporate portfolio outside of Singapore. It is possible that this move could have an impact on the pricing of accommodation in Rivervale, as well as the surrounding districts.

The firm focuses on providing quality service and great experiences for its guests. It is no surprise then that Hiap Hoe’s rebrand of two more hotels to the Aloft Singapore Novena has been met with much anticipation.

The noteworthy move of acquiring the Great Eastern Motor Lodge marks a turning point for Hiap Hoe. With the success of the community-driven initiatives, such as the Orchard Towers en bloc sale, the company is paving the way for its upcoming developments this 2021. Despite seeing losses in its first-quarter earnings, a revenue surge resonates hope for the firm.

The Tengah EC acquisition is expected to be beneficial to both Hiap Hoe and property owners in the area. This will be the first step towards Hiap Hoe’s expansion, and the property market is sure to be impacted with the injection of a new investor.

Tengah EC is the first of its kind eco-centre in Singapore. This new development offers a wide range of eco-friendly programmes and features such as a wind turbine, solar heating system, water conservancy centre, a harvesting pond for residents to fish daily and live bands playing traditional Chinese music. It is expected that this project will be an impressive example of sustainability and environmental awareness in Singapore. To complement its remarkable features, Tengah EC is also conveniently located near Tengah MRT Station, one of the busiest stations in Singapore.

Hiap Hoe is pushing the boundaries of the hospitality industry as it continues to move towards various geographical locations. With the proposed acquisition of the Great Eastern Motor Lodge in Rivervale, the firm has demonstrated its commitment to growing the portfolio.

Tengah EC solidifies the company’s stance of reliability, convenience and security, making it a reliable choice for travelers, property owners and investment firms alike.