19 April 2013
Clifford Chance advises Australia's Toga Group on hotel joint venture with Singapore's Far East Orchard Group
Sydney: Leading international law firm Clifford Chance has advised Australia's Toga Group on a 50:50 joint venture in hotel management and ownership with Singapore's Far East Orchard Limited.
The Toga Group develops hotels, residential apartments and mixed use projects including retail and commercial across Australia, New Zealand and Europe, largely under the Adina, Vibe and Travelodge brands. This is the third corporate transaction that the Sydney team has completed for Toga Group in recent years.
Far East Orchard Limited is a member of Far East Organization, Singapore’s largest private property developer, focusing on property development, hospitality real estate development and management and healthcare real estate.
The new joint venture will be a fully aligned and integrated hotel ownership and management platform that will leverage the combined capabilities of Toga and Far East Orchard in development, construction and hotel management.
The joint venture will initially operate more than 6,800 apartments and hotel rooms in over 50 properties across Australia, New Zealand, Germany and Denmark. Under the terms of the joint venture, Far East Orchard has agreed to inject A$250 million into the joint venture, which has been earmarked for growth ambitions, either of hospitality related assets or hospitality management businesses.
Partner Lance Sacks led the Clifford Chance team advising the Toga Group, assisted by senior associate Kane Barnett and associates Owen Thomas, Matthew Morris and Amanda Digby. All are based in Sydney. Singapore partner Raymond Tong assisted on Singapore regulatory issues.
The Toga/Far East Orchard transaction caps a busy first quarter for Clifford Chance in the Australian real estate sector. The firm also advised the Lowy Family Group on the divestment of its holding in Westfield Retail Trust, and MGPA on the acquisition of the Optima Centre in Perth.