Khazanah Nasional and Temasek, sovereign wealth funds of Malaysia and Singapore, respectively, have sold an upmarket Singapore hotel to a local developer, Hoi Hup Realty, for a record price of S$475m (€314m).

The Andaz Singapore was sold for the highest price achieved for a standalone hotel transaction in Singapore, and the third-highest price achieved in Asia this year, according to JLL Hotels & Hospitality Group, advisers to the transaction.

The sale comes after the two sovereign wealth funds sold their DUO project to Allianz Real Estate and Hong Kong-based Gaw Capital for S$1.58bn in July.

The 342-room hotel occupies the top 15 floors of Duo Tower, which is located in the Bugis district on the fringe of Singapore’s CBD.

Singapore-based M+S, which is 60% owned by Khazanah and 40% by Temasek, completed the sprawling DUO multi-use complex in 2018.

In a statement today, M+S said it was selling its wholly-owned company, Ophir-Rochor Hotel, the developer and owner of Andaz Singapore. Andaz is the top brand under the Hyatt suite of hotel chains.

“Having assessed such a strong offer, we have determined that the proposed transaction will allow us to maximise returns to our shareholders,” said Kemmy Tan, M+S CEO.

Wong Swee Chun, chairman of Hoi Hup, said the company had been attracted to the “rarity” of the high-quality luxury hotel offering, as well as its historic significance.

M+S was set up in 2011 by Malaysia and Singapore to develop two integrated developments in central Singapore, known as Marina One and Duo.

Tan said M+S would continue to own and manage its assets at Marina One.

Khazanah and Temasek said last year that the Marina One and DUO projects were worth a combined S$11bn in development value.