Singapore Resort Owner Said in Talks to Buy Hotel From BlackRock

Apr 04, 2014 4:24 am ET

April 4 (Bloomberg) -- Royal Group Holdings Pte, the closely held company that owns The Sentosa Resort & Spa in Singapore, is in talks to buy a hotel in Kuala Lumpur from BlackRock Inc., according to a person with knowledge of the matter.

The transaction needs government approval, the person said, declining to be identified as the talks are private. BlackRock declined to comment in an e-mailed response to queries on the sale from Bloomberg News.

The 540-room DoubleTree by Hilton is located at The Intermark, an office and retail complex within a 10-minute walk from the Petronas Twin Towers and Kuala Lumpur Convention Center.

Hotel investment volumes in the region reached a record high with 143 deals valued at $13.4 billion last year, according to CBRE Group Inc.

BlackRock, the world’s largest asset manager, sold its Westin hotel in Singapore’s new central business district last year. The 305-room hotel in the Asia Square Tower 2 commercial development in the Marina Bay area was sold to Daisho Group, BlackRock said in December.

Royal Group bought The Sentosa Resort & Spa in Singapore last year from Hong Kong-based HKR International Ltd. for S$210.85 million, HKR said in a filing on Aug. 15.

BlackRock, based in New York, last year bought MGPA, a private-equity property investment advisory firm, to expand its real estate business in the Asia-Pacific region and Europe. Together with the MGPA assets, Blackrock manages about $23.5 billion, focusing on real estate funds management, co- investments and separate-account mandates for institutional investors, BlackRock said in October.