Ascott Residence Trust Clinches Fourth Student Accommodation Asset For US$83.25 Million

By: CapitaLand
 
SINGAPORE - Oct. 31, 2021 - PRLog -- Ascott Residence Trust (ART) will acquire a freehold 548-bed student accommodation asset, named Seven07 in Champaign, Illinois, USA for US$83.25 million (S$112.4 million). Seven07 serves about 56,000 undergraduate and graduate students from the nearby University of Illinois Urbana-Champaign (UIUC). The yield-accretive acquisition is set to increase ART's pro forma FY 2020 Distribution per Stapled Security by approximately 1.2%. The entry EBITDA yield is expected to be about 4.5% and is expected to rise to about 4.8% on strong rental growth for Academic Year (AY) 2022. The transaction, which is expected to be completed in mid-November 2021, will be funded by debt and part of the proceeds from ART's private placement launched in September 2021. The acquisition of Seven07 follows ART's recent acquisition of Wildwood Lubbock in Texas and is ART's fourth student accommodation investment within 10 months this year.

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: "ART continues to ramp up our investments in the longer-stay segment to build stable income and the resilience of our portfolio. Seven07 is operational and will start contributing stable income immediately upon acquisition. The student accommodation asset is 100% occupied for AY 2021, with lease terms of about one year. For the AY 2022, Seven07 is about 50% pre-leased with strong rental growth of about 8% over AY 2021."

For full release: https://bit.ly/ARTILL4Em

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Tags:Student Accommodation
Industry:Real Estate
Location:Singapore - Singapore - Singapore
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