Singaoporean investor CDL Hospitality Trusts is buying Hotel Indigo Exeter and two shops from Hotel Exe, Plaza Properties and Plaza Retail for £19.4 million.
The assets are being bought by CDL subsidiaries CDL HBT Investments (III) Property and CDL HBT Investments (III) Retail. City Developments Limited is a leading Singapore real estate company controlled by billionaire Kwek Leng Beng.
CDL described the freehold property as an upscale lifestyle boutique hotel offering 104 rooms, with spa and gym facilities as well as two shops. After undergoing a conversion from a House of Fraser department store, the hotel fully opened in October 2023. The converted hotel offers a more contemporary alternative to its competitors, CDL said. The existing leases of the two shops will continue until 2033 on a fixed rent basis with tenant break options in June 2028 and March 2029 respectively.
The hotel is located on the doorstep of the main retail high street and the Princesshay Shopping Centre, recently bought by Frasers. The historic city of Exeter is located along the M5, a major motorway linking the Midlands to the South West of England.
The estimated total cost is approximately £21.5 million which comprises the purchase price of £19.4 million and transaction costs. It will be fully funded through debt.
CBRE has valued the property at £19.5 million as at the valuation date of 30 September 2024. The valuation comprises the hotel component at £15.5 million and the retail component at £4 million.
Vincent Yeo, CEO of CDLHT’s Managers, said in a statement: “This is a continuation of our strategy to pursue accretive acquisitions that augment our income streams. This acquisition also increases our exposure to the burgeoning lifestyle hotel market."
The UK holding company has entered into a franchise agreement with IHG Hotels and the hotel will continue to operate under the “Hotel Indigo” brand name, which is part of the collection of brands under the InterContinental Hotels Group.