Starwood Capital Group, the property investment firm, and Chinese billionaire Guo Guangchang’s Fosun International Ltd. are weighing bids for Ascendas Hospitality Trust, people with knowledge of the matter said.
Starwood Capital, which manages about $45 billion of assets, and Fosun are studying the Singapore-based hotel owner and could submit offers as early as the end of January, the people said, asking not to be identified as the information is private. Blackstone Group LP and Hong Kong’s Gaw Capital Partners have also been considering bids for Ascendas Hospitality, which has a market value of S$810 million ($563 million), people with knowledge of the matter said earlier this month.
Any offer for Ascendas Hospitality would add to the $8.9 billion in acquisitions of Singapore real estate companies and property trusts announced in the past year, according to data compiled by Bloomberg. Lone Star Funds agreed in October to buy Saizen REIT’s Japanese assets for 44.7 billion yen ($379 million).
Ascendas Hospitality said last month it’s reviewing strategic options after receiving unsolicited interest. A spokesman for Fosun declined to comment, while a spokeswoman for Ascendas Group said she couldn’t immediately comment. Calls to Starwood Capital’s Hong Kong office weren’t answered, and a U.S.-based representative for the investment firm didn’t answer calls outside regular business hours.
Ascendas Hospitality owns 11 hotels with 4,100 rooms in Australia, China, Japan and Singapore. Its properties include Novotel Sydney Central, Ibis Beijing Sanyuan and Park Hotel Clarke Quay, according to its website. It is backed by Ascendas Pte, which also runs a business park trust and an Indian property trust listed in Singapore.
Starwood Capital, run by Barry Sternlicht, agreed last year to buy U.S. apartments from Equity Residential for $5.4 billion in its biggest acquisition of non-hotel properties. Starwood Capital and Milestone Apartments Real Estate Investment Trust said in October they will buy Landmark Apartment Trust Inc., an owner of multifamily properties in the southern U.S., in a deal valued at $1.9 billion.
Fosun, which owns resort operator Club Mediterranee SA and a stake in Cirque du Soleil Inc., has businesses including insurance, pharmaceuticals and fashion. Its property portfolio includes the Lloyds Chambers office building in London and New York’s One Chase Manhattan Plaza.
–With assistance from Emma Dong.
This article was written by Vinicy Chan, Pooja Thakur and Joyce Koh from Bloomberg and was legally licensed through the NewsCred publisher network.