Starhill #REIT in Talks to Buy Three #Marriott Hotels

Starhill Real Estate Investment Trust will soon be adding Sydney Harbour, Melbourne and Brisbane Marriott Hotels to its portfolio.

The fund is reportedly in exclusive talks with Colonial First State’s Commonwealth Property Hotel Fund for the three Australian hotels that have a combined value estimated at more than AUD 400 million. Sovereign wealth fund Abu Dhabi Investment Authority was the under-bidder in the transaction.

Commonwealth Property Hotel Fund was closed in 2009 and is currently divesting its assets to return equity to unitholders. Part of the Commonwealth Bank of Australia, the fund acquired the three Australian five-star hotels between June 2000 and April 2001.

A Colonial spokesperson says they are "pleased with the way discussions are progressing" with Starhill REIT.

Kuala Lumpur-listed Starhill REIT invests in retail, office and hospitality-focused real estate, and is managed by Pintar Projek, a subsidiary of YTL Land, a wholly-owned subsidiary of YTL Corp. Its existing portfolio includes Kuala Lumpur’s JW Marriott Hotel and The Ritz-Carlton and Cameron Highlands Resort.

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