Ascott Residence Trust Secures Third Student Accommodation Asset In USA For US$70 Million

Expands longer-stay portfolio to about 11% to build income resilience
By: CapitaLand Limited
 
SINGAPORE - Sept. 9, 2021 - PRLog -- Ascott Residence Trust (ART) will acquire a freehold 1,005-bed student accommodation asset in Texas, USA for US$70.0 million[1] (S$93.8 million[2]), its third student accommodation investment within a span of seven months. One of the newest student accommodation in the area, Wildwood Lubbock is a cottage-style property which serves over 40,000 undergraduate and graduate students from Texas Tech University (TTU). The accretive acquisition will increase ART's pro forma FY 2020 Distribution per Stapled Security by approximately 1.5%[3]. The EBITDA[4] yield is expected to be 5.1%. The transaction will be completed on 21 September 2021.

Ms Beh Siew Kim, Chief Executive Officer of Ascott Residence Trust Management Limited and Ascott Business Trust Management Pte. Ltd. (the Managers of ART) said: "The acquisition of our third student accommodation asset is in line with ART's strategy to acquire assets with longer length of stay and diversify our portfolio from traditional hospitality assets, further increasing ART's resilience and stable income. Leases are typically for a year and Wildwood Lubbock will start contributing income immediately. Despite COVID-19, Wildwood Lubbock is 100% leased for the 2021 Academic Year and there is minimal upcoming private student accommodation supply."

For full release: https://bit.ly/ART3StuAccomEm

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Tags:Investment
Industry:Real Estate
Location:Singapore - Singapore - Singapore
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