King & Wood Mallesons has continued its streak of advisory roles on South East Asian investment into the Australian Real Estate Sector, acting for Singapore-listed Far East Orchard (FEOrchard) on its $225 million investment with Australian hotel and property company, Toga Group.
Far East Orchard is a diversified business that is focused on property development, hospitality management and providing world class healthcare space. Toga Group is one of the leading accommodation providers in Australia and currently operates more than 50 serviced apartments and hotels, or more than 6,800 apartments and hotel rooms across Australia, New Zealand, Germany and Denmark. The hotels and serviced apartments are operated by Toga under the Medina Serviced Apartments, Adina Apartment Hotels, Vibe Hotels and Travelodge Hotels brands.
Under the deal, FEOrchard and Toga Group have agreed to enter into a 50-50 joint venture arrangement. Upon completion of the deal, the joint venture will own Toga Group’s hospitality management business and, if an option is exercised, five hospitality assets (being Adina Apartment Hotel Sydney Harbourside, Adina Apartment Hotel Adelaide Treasury, Adina Apartment Hotel Brisbane, Vibe Hotel Sydney and Travelodge Mirambeena Resort Darwin).
While FEOrchard has a long track record owning and managing hotels in the Asia Pacific region, this investment will firmly cement the company as a key player in the Australian hospitality market.
The King & Wood Mallesons team was led by Partners David Friedlander (Corporate) and Stuart Dixon-Smith (Property). They were supported by Special Counsel Simonne Einfeld (Property), Senior Associates Amanda Isouard (Corporate) and Jason Browne (Property) and Solicitor Samantha Holt (Corporate). Senior Associates Anna Golovsky and Patrick Atkinson and Solicitor Nick Valentine also provided Intellectual Property related advice.
“We are pleased to have supported our client on this strategic investment into the Australian real estate market. This deal reflects the increasing capital partnering trend with Australian REITS and developers forming joint ventures with offshore entities to fund projects in the property sector. In particular, there seems to be a strong appetite from South East Asian investors,” said David Friedlander.
King & Wood Mallesons has advised a number of leading global and Asia focussed real estate managers and sponsors, including Ascendas, Securus Data Property Fund Pte. Ltd , CLSA Capital Partners, LaSalle Investment Management and Pramerica Real Estate Investors, on their recent inbound investments into the Australian property and real estate sector.
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