Article
Movenpick Resort and Spa Phuket, Thailand Sells for USD 90 Million
June 13th, 2012 by THE INVESTOR | Leave a comment | Global News
Jones Lang LaSalle Hotels has completed the single largest hotel transaction in Thailand in recent years. Movenpick Resort and Spa Karon Beach Phuket was sold on behalf of Kingdom Hotel Investments to Crystal Caliber Sdn Bhd, a wholly owned subsidiary of Malaysia-based TA Global Berhad.
Occupying a prime location along Phuket’s western coast on Karon Beach and set within extensive landscaped tropical gardens, the 338-key Movenpick Resort and Spa Karon Beach is one of Phuket’s most established resorts. In addition to a wide range of room categories, the resort features 30 two-bedroom residences, eight food and beverage outlets, four swimming pools, in excess of 14,526 sq ft (1,350 sqm) of dedicated meeting space and a variety of recreational activities.
The sale of the Movenpick Resort and Spa Karon Beach brings Jones Lang LaSalle’s total transacted hotel volume in Thailand to in excess of USD 440 million (THB 13.5 billion) over the last 24 months. The substantial volume of hotel transactions and robust pace of market activity are testament to the continued strength of the domestic and regional demand for opportunities in Phuket, as well as the wider Thai market.
Two garden-style apartment communities, totaling 504 units, and centrally located in Newport News, Virginia, provide investors with the unique opportunity to acquire the assets as a portfolio or individually. They are offered free and clear yielding leveraged IRR's approaching 25% and average leveraged cash-on-cash returns in the high teens. Both Properties provide direct access to the Virginia Port Authority, numerous military bases, and extensive retail due to their central location along Jefferson Avenue and Warwick Boulevard. During the past two years, approximately USD 2.5 million in capital improvements have resulted in improved curb appeal, operational efficiencies, and continued increases in NOI. The Virginia Peninsula is home to nine major military bases and approximately 100,000 military personnel that provide extensive demand for quality rental product. Year-over-year employment growth in the region has been positive for the past 13 consecutive months and the regional unemployment rate has fallen 100 bps since year-end 2011. Should you wish to receive more information on this investment opportunity, please contact us at acm@ap.jll.com
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