CDLHT: Announcement on the Divestment of Novotel Brisbane

21/10/2020

General Announcement::Announcement by CDL Hospitality Trusts

GENERAL ANNOUNCEMENT::ANNOUNCEMENT BY CDL HOSPITALITY TRUSTS

Issuer & Securities

Issuer/ Manager

CITY DEVELOPMENTS LIMITED

Securities

CITY DEVELOPMENTS LIMITED - SG1R89002252 - C09

Stapled Security

No

Announcement Details

Announcement Title

General Announcement

Date &Time of Broadcast

21-Oct-2020 12:18:38

Status

New

Announcement Sub Title

Announcement by CDL Hospitality Trusts

Announcement Reference

SG201021OTHRWCCK

Submitted By (Co./ Ind. Name)

Enid Ling Peek Fong

Designation

Company Secretary

Description (Please provide a detailed description of the event in the box below)

CDL Hospitality Trusts has on 21 October 2020, released the announcement on the Divestment of Novotel Brisbane.

For details, please refer to the announcement released by CDL Hospitality Trusts on the SGX website, www.sgx.com

https://links.sgx.com/1.0.0/corporate-announcements/XKVZBYKM1HWEFVIB/a8b3c35b8b0d492de15c431071ef0829e6aded3252cf4a78d669707999… 1/1

21/10/2020

Asset Acquisitions and Disposals::DIVESTMENT OF NOVOTEL BRISBANE

ASSET ACQUISITIONS AND DISPOSALS::DIVESTMENT OF NOVOTEL BRISBANE

Issuer & Securities

Issuer/ Manager

M&C REIT MANAGEMENT LIMITED

Securities

CDL HOSPITALITY TRUSTS - SG1T66931158 - J85

Stapled Security

Yes

Other Issuer(s) for Stapled Security

Name

DBS TRUSTEE LIMITED

Announcement Details

Announcement Title

Asset Acquisitions and Disposals

Date &Time of Broadcast

21-Oct-2020 07:41:35

Status

New

Announcement Sub Title

DIVESTMENT OF NOVOTEL BRISBANE

Announcement Reference

SG201021OTHRGQDE

Submitted By (Co./ Ind. Name)

Soo Lai Sun

Designation

Company Secretary

Description (Please provide a detailed description of the event in the box below)

Please see the attached documents on the Divestment of Novotel Brisbane:

1. Announcement; and
2. Press Release on "Divestment of Novotel Brisbane for A$67.9 Million".

Attachments

CDLHT_Announcement_Divestment_of_Novotel_Brisbane.211020.pdf

CDLHT_Press_Release_Divestment_of_Novotel_Brisbane.211020.pdf

Total size =860K MB

https://links.sgx.com/1.0.0/corporate-announcements/380AP7Q3J5VJE0EU/f1695ccacef480e9924049d8f2bdfba87afc9f1e0c661551fc4d00fad5f1da7c 1/1

A stapled group comprising:

CDL HOSPITALITY REAL ESTATE INVESTMENT TRUST

(a real estate investment trust constituted on 8 June 2006 under the laws of the Republic of Singapore)

CDL HOSPITALITY BUSINESS TRUST

(a business trust constituted on 12 June 2006 under the laws of the Republic of Singapore)

ANNOUNCEMENT

DIVESTMENT OF NOVOTEL BRISBANE

1. INTRODUCTION
   M&C REIT Management Limited, as manager of CDL Hospitality Real Estate Investment Trust
   ("H-REIT" and the manager of H-REIT, the "H-REITManager"), and M&C Business Trust Management Limited, as trustee-manager of CDL Hospitality Business Trust ("HBT" and the trustee-manager of HBT, the "HBT Trustee-Manager" and together with the H-REIT Manager, the "Managers", and H-REIT and HBT together, "CDLHT") are pleased to announced that DBS Trustee Limited, as trustee of H-REIT (the "H-REITTrustee"), has today through Sunshine Hotels Australia Pty Ltd, as the trustee of its indirectly wholly-ownedsub-trust, Sun Trust Two, entered into a sale and purchase agreement (the "Divestment Agreement") with ADFA Brisbane Pty Ltd (the "Purchaser"), an independent third party, to divest the property known as "Novotel Brisbane" located at 200 Creek St, Brisbane City, Queensland 4000, Australia (the "Property") for approximately A$67.9 million (approximately S$66.4 million1) (the "Divestment Consideration" and the divestment of the Property, the "Divestment").
2. THE PROPERTY
   The Property is a premium 4.5-star hotel operated under the Novotel brand and comprises 296 guest rooms and suites with a gross floor area of 28,049 square metres over 15 levels. Located in the central business district of Brisbane City, the Property is within walking distance to the Central Station, Queen Street Mall, Eagle Street Pier and the Howard Smith Wharves precinct.
   The Property is popular amongst multinational corporate and government bodies along with leisure guests over major event periods and weekends. The Property has conference facilities consisting 11 separate venues for up to 400 delegates (maximum capacity without taking into account the current government regulations for COVID-19).

1 Unless otherwise stated in this announcement, all conversions are based on an assumed exchange rate of A$1.00 = S$0.9777.

1

A summary of selected information on the Property is as follows:

Address / location	200 Creek St, Brisbane City, Queensland 4000, Australia
Title	Strata Volumetric Freehold
Description	Hotel
Parking	70 car park lots
Number of rooms	296
Facilities	11 versatile conference and function rooms featuring a pillarless
	ballroom and outdoor pool deck area
Gross Floor Area	28,049 square metres
Master Lessee	HI Operations Pty Ltd, a subsidiary of AccorInvest Group S.A.
	under a master lease commencing on 19 February 2010 and
	expiring on 30 April 2021

3. DIVESTMENT CONSIDERATION AND VALUATION

Sunshine Hotels Australia Pty Ltd as the trustee of Sun Trust Two has commissioned Cushman & Wakefield (Valuations) Pty Ltd (the "Independent Valuer") to value the Property. The Independent Valuer has valued the Property at A$67.5 million (approximately S$66.0 million) as at 31 August 2020 using the discounted cash flow and stabilised earnings valuation methodologies (the "Independent Valuation").

The Divestment Consideration of approximately A$67.9 million (approximately S$66.4 million) represents a slight premium to the Independent Valuation. The Divestment Consideration is 6.9% (approximately A$4.4 million) higher than the original purchase price of A$63.5 million paid for the Property on 18 February 2010.

For the information of holders of Stapled Securities2 ("Security Holders"), the Divestment Consideration represents a 7.0% discount (a discount of A$5.1 million) to the book value of the Property as at 31 December 2019 of A$73.0 million which did not take into account the impact of the COVID-19 outbreak on the Property's trading performance and outlook.

The Divestment Consideration was arrived at on a willing-buyer and willing-seller basis after taking into account the Independent Valuation.

2 Each "Stapled Security" comprises one unit in H-REIT and one unit in HBT stapled together under the terms of the stapling deed dated 12 June 2006 (as amended, varied and supplemented from time to time) entered into between the H -REIT Manager, H-REIT Trustee, and the HBT Trustee-Manager.

2