Malaysia-based investment holding company Plenitude has acquired a 13-storey hotel in Seoul, South Korea, for RM114.3m ($24.61m), the Malaysian Reserve has reported.

The deal was carried out via the company’s indirect Singapore-based subsidiaries, Plenitude Koi Pte and Bizcentre Capital, according to the Star.

This transaction comes after the subscription by the subsidiaries for beneficiary certificates of Capstone General Private Investment Trust No. 40 (CGPI Trust), which is a real estate investment trust established to buy the Seoul-based hotel.

Woori Bank and Capstone Asset Management, who have been collectively termed as the purchasers, facilitated this deal. Woori Bank is the trustee of CGPI Trust and Capstone Asset Management is the asset management company of CGPI Trust.

The 174-room midscale hotel is located at 16 Supyo-ro, Chungmuro 3-ga, Jung-gu, within the Seoul metropolitan area.

Built in 1990 and renovated in 2014, the hotel is situated on 502.50m² of land and has a gross floor area of 5,163.73m².

According to Plenitude, the acquisition price was agreed upon via an arm’s length negotiation and is in line with an independent valuation report from Pacific Appraisal.

The independent valuer has put the value of the hotel at RM125.4m based on a mix of the cost approach, yield capitalisation method and sales comparison mode.

Currently, the company owns ten hospitality assets and considers this deal a strategic move towards diversification and expansion.

Following the success of Travelodge Myeongdong Euljiro, which is Plenitude’s first hotel in Seoul, the company plans to leverage the synergies between the two properties, which are located roughly 450m apart from each other.

The deal also supports the company's objective to maximise operational efficiency and seize pent-up demand.

This acquisition is expected to be completed by 6 October 2023.