Singapore-based realty firm First Sponsor Group on Thursday said it has partnered with its two key shareholders, City Developments and Tai Tak Estates to buy the Le Méridien Frankfurt Hotel in Germany for 85 million euros (S$135.9 million).
The hotel is currently leased to MHP Parkhotel GmbH with a lease expiry date of May 31, 2040 and is operated under the "Le Méridien" brand.
"...with Brexit, hotels in Frankfurt will see increasing demand as businesses including banks are shifting their operations and activities to this German city," said Kwek Eik Sheng, Chief Strategy Officer and Head of Asset Management, at City Developments.
The Le Méridien Frankfurt Hotel is a freehold property that is located close to the main train station in the Frankfurt district of "Bahnhofsviertel" - the city centre of Frankfurt.
The hotel comprises two buildings, a historic part with a monumental status built in 1905 that has 80 rooms and a modern part built in the 1970s with 220 rooms.
The acquisition is expected to be completed in late December 2017 or early January 2018.
Earlier this year, City Developments entered the Munich market through CDL Hospitality Trusts' acquisition of Pullman Hotel Munich.
CDL Hospitality Trusts also bought The Lowry Hotel in Manchester in May for about 52 million pounds.
Shares of City Developments rose 2.9 percent to S$12.12 while First Sponsor's shares were unchanged at S$1.38.