New Reporter
03-05-23, 11:05
Link Hotel in Tiong Bahru goes into receivership, put up for sale
Apr 24, 2023
LINK Hotel Singapore, a boutique hotel in Tiong Bahru, has been placed in receivership after a S$50 million loan default, and is now up for sale.
Hong Kong-listed parent company Link Holdings on Apr 3 disclosed that it had failed to make an outstanding payment of S$31 million on a S$50 million loan granted by DBS, which then demanded repayment of the full loan.
The loan had been granted to Hang Huo Investment, a wholly-owned subsidiary of Link Holdings and the owner of Link Hotel Singapore. The statement was filed with the Hong Kong Exchange.
Senior managing director of corporate finance and restructuring at FTI Consulting Martin Wong has been appointed by DBS as receiver and manager, after Link Holdings failed to pay the sum. The banking facilities are secured by mortgages on Link Hotel Singapore and the land it occupies.
Last Friday (Apr 21), FTI Consulting opened an expression of interest (EOI) exercise for bids on the purchase of Link Hotel Singapore or the land that it sits on.
The hotel was valued at close to S$140 million by an independent qualified valuer in late 2022, according to sources familiar with the matter.
The site spans a total land area of 8,360 square metres (sq m), with a gross floor area of 10,196.2 sq m. Under the Urban Redevelopment Authority’s Master Plan 2019, it is zoned for hotel use at a gross plot ratio of 3.0. The site has about 43 years remaining on a 100-year lease dated from Jan 1, 1967, from the Singapore Tourism Board, and has permitted use for “hotel and backpackers’ hostel”.
Located at 50 and 51 Tiong Bahru Road, Link Hotel Singapore comprises two four-storey blocks connected by a link bridge. The hotel, which opened in 2007, is located within one kilometre walking distance from Outram, Tiong Bahru and Havelock MRT stations, near Tiong Bahru Market and Food Centre and Tiong Bahru Plaza.
In response to queries from The Business Times, Wong said that all options will be assessed including a sale. “At this juncture, the receiver and manager is still in the process of gathering information about the assets and will continue to assess all options,” he added.
It will be business as usual at the hotel in the meantime.
Link Holdings’ Q3 2022 report noted that since 2020, Link Hotel Singapore has been adversely affected by worldwide travel restrictions and the Covid-19 pandemic.
Although business improved after Link Hotel Singapore secured a government contract to use part of the hotel as quarantine accommodation in 2022, it still sustained an HK$11.6 million (S$2 million) operating loss for the nine months ended Sep 30, 2022.
In an announcement on Apr 3, Link Holdings said that while it is making continual efforts to secure funding to repay its loan, it is unable to proceed with refinancing or related activities due to an injunction order from the High Court of Hong Kong. The injunction order was made after the company failed to repay HK$55.6 million it owed to Hong Kong-based financial services company CMI Financial Holding.
Submissions for the EOI for Link Hotel Singapore will close on May 5, 2023.
https://www.businesstimes.com.sg/property/link-hotel-tiong-bahru-goes-receivership-put-sale
Apr 24, 2023
LINK Hotel Singapore, a boutique hotel in Tiong Bahru, has been placed in receivership after a S$50 million loan default, and is now up for sale.
Hong Kong-listed parent company Link Holdings on Apr 3 disclosed that it had failed to make an outstanding payment of S$31 million on a S$50 million loan granted by DBS, which then demanded repayment of the full loan.
The loan had been granted to Hang Huo Investment, a wholly-owned subsidiary of Link Holdings and the owner of Link Hotel Singapore. The statement was filed with the Hong Kong Exchange.
Senior managing director of corporate finance and restructuring at FTI Consulting Martin Wong has been appointed by DBS as receiver and manager, after Link Holdings failed to pay the sum. The banking facilities are secured by mortgages on Link Hotel Singapore and the land it occupies.
Last Friday (Apr 21), FTI Consulting opened an expression of interest (EOI) exercise for bids on the purchase of Link Hotel Singapore or the land that it sits on.
The hotel was valued at close to S$140 million by an independent qualified valuer in late 2022, according to sources familiar with the matter.
The site spans a total land area of 8,360 square metres (sq m), with a gross floor area of 10,196.2 sq m. Under the Urban Redevelopment Authority’s Master Plan 2019, it is zoned for hotel use at a gross plot ratio of 3.0. The site has about 43 years remaining on a 100-year lease dated from Jan 1, 1967, from the Singapore Tourism Board, and has permitted use for “hotel and backpackers’ hostel”.
Located at 50 and 51 Tiong Bahru Road, Link Hotel Singapore comprises two four-storey blocks connected by a link bridge. The hotel, which opened in 2007, is located within one kilometre walking distance from Outram, Tiong Bahru and Havelock MRT stations, near Tiong Bahru Market and Food Centre and Tiong Bahru Plaza.
In response to queries from The Business Times, Wong said that all options will be assessed including a sale. “At this juncture, the receiver and manager is still in the process of gathering information about the assets and will continue to assess all options,” he added.
It will be business as usual at the hotel in the meantime.
Link Holdings’ Q3 2022 report noted that since 2020, Link Hotel Singapore has been adversely affected by worldwide travel restrictions and the Covid-19 pandemic.
Although business improved after Link Hotel Singapore secured a government contract to use part of the hotel as quarantine accommodation in 2022, it still sustained an HK$11.6 million (S$2 million) operating loss for the nine months ended Sep 30, 2022.
In an announcement on Apr 3, Link Holdings said that while it is making continual efforts to secure funding to repay its loan, it is unable to proceed with refinancing or related activities due to an injunction order from the High Court of Hong Kong. The injunction order was made after the company failed to repay HK$55.6 million it owed to Hong Kong-based financial services company CMI Financial Holding.
Submissions for the EOI for Link Hotel Singapore will close on May 5, 2023.
https://www.businesstimes.com.sg/property/link-hotel-tiong-bahru-goes-receivership-put-sale