LaSalle makes $260m Singapore hotel exit

The Chicago-based firm has agreed the sale of the Swiss Merchant Court Singapore hotel to Kuala Lumpur-based TA Enterprise, according to reports in Malaysia’s press.

LaSalle Investment Management is to sell the hotel and operational business of Swiss Merchant Court Singapore to Kuala Lumpur-based TA Enterprise for $260 million.

According to reports in the Malaysian press, the financial services and property and hospitality investment company has agreed an all-cash deal for the hotel.

Chicago-based LaSalle is to sell the Luxury hotel on Merchant Road from its second Asian opportunity fund, the LaSalle Asia Opportunity Fund II, which launched in 2005 and raised $1 billion of equity.

The sale of the hotel, which opened in 1997, is still dependent on various approvals.

LaSalle has been a cautious investor in Asia in recent times. Having closed on $3 billion of equity last year for its follow-up to the LaSalle Asia Opportunity Fund II, the firm has spent only 20 percent of that sum, with the rest remaining as dry powder.

In February, David Edwards, LaSalle’s Asia-Pacific research director, said in a media briefing: “This is a time to proceed with caution. Although growth in Asia-Pacific is likely to exceed other major regions, the slower prospects for the US and Europe will continue to degrade prospects (in the region) for 2009 to 2010.”