CMC REIT spent over 200 million yuan to purchase the hotel on Keswick Road, planning to convert it into student dormitories

CMC REIT (01503.HK) announced that it has entered into a share purchase agreement with the seller Champfield Holdings Limited to acquire the company holding the hotel at 2 Austin Avenue, Kowloon (Habyt Austin Avenue) and its shareholder loans for nearly HKD 206 million.

The hotel has 19 floors and a total floor area of approximately 2,165 square meters, with 29 guest rooms, averaging about HKD 7.1 million per room. CMC REIT indicated that as of November 10 this year, the hotel was valued at HKD 213 million, and the acquisition price represents a discount of about 3.3% to the valuation. The acquisition is expected to enrich its asset portfolio and enhance the stability of long-term income and distributions per fund unit.

The manager plans to convert the Austin Avenue hotel into a student dormitory with 85 beds. According to estimates and research by the REIT manager, they hold an optimistic view on the potential of the Austin Avenue hotel to be converted into a student dormitory after the completion of the transaction