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Singha Estate buys six Outrigger hotels

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SET-listed property developer Singha Estate Plc yesterday announced the successful acquisition of six Outrigger-branded hotels.

The US$310 million (9.94 billion baht) acquisition is part of Singha Estate's strategic investment approach, called SMART Mergers and Acquisitions (SMART M&A), which focuses on high-return asset investment, mainly in fast-growing tourist destinations around the globe.

The company has also emphasised brand building, customer experience and promoting sustainability of the surrounding community and environment, it said in a statement.

The acquisition is working towards having an initial public offering in 2019 for S Hotels & Resorts, a subsidiary of Singha Estate, to make it a global holding company.

"Singha Estate aims to become a premier property development and investment holding company generating revenue of 20 billion baht by 2020. This acquisition of Outrigger-branded hotels in four countries will generate recurring income and further diversify the company's profile and location for high-yield tourist destinations," said Naris Cheyklin, the company's chief executive.

Singha Estate's SMART M&A has generated asset growth from 11.2 billion baht in 2014 to 40.9 billion baht in 2017. Combined with a substantial investment in the Crossroads project in the Maldives, Singha Estate's total asset growth effect will soon top 60 billion baht, according to the statement.

"This asset sale and strategic partnership provide new capital for further expansion while retaining Outrigger's brand presence and management of world-class properties," said Jeff Wagoner, president and chief executive of Outrigger Hotels and Resorts.

Singha Estate reported total revenue of 6.2 billion baht in 2017, up from 3.65 billion in 2016. Last year's net profit was 572 million baht, up from 170 million in 2016.

S shares closed yesterday on the Stock Exchange of Thailand at 3.34 baht, an increase of two satang, in trade worth 4.54 million baht.


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