Ascott Residence Trust to acquire $318.3 mil of assets in Australia, France, Japan, US and Vietnam

Yield-accretive acquisition of the nine properties is expected to enhance ART's income resilience and consolidate its position as Asia-Pacific's largest hospitality trust
By: CapitaLand Investment Limited
SINGAPORE - Aug. 15, 2022 - PRLog -- Ascott Residence Trust (ART) is proposing to acquire nine quality serviced residences, rental housing and student accommodation properties across five countries from its sponsor, The Ascott Limited. At an estimated total capitalised cost of S$318.3 million, the yield-accretive acquisition is set to increase ART's distribution by S$9.2 million and its pro forma FY 2021 Distribution per Stapled Security by 2.8%.

The acquisition is expected to strengthen ART's presence in its existing markets. The assets are predominantly located in Asia-Pacific with seven of the assets in Australia, Japan and Vietnam, and two in France and the USA. The acquisition of the nine properties with a total of 1,018 units will grow ART's total assets to S$8.3 billion as of 31 December 2021 on a pro forma basis, further consolidating ART's position as Asia-Pacific's largest hospitality trust. Post-acquisition, ART's portfolio will exceed 100 properties, with over 18,000 units across 47 cities and 15 countries.

Ms Serena Teo, Chief Executive Officer of Ascott Residence Trust Management Limited and Ascott Business Trust Management Pte. Ltd. (the Managers of ART) said: "We are proposing to acquire nine quality assets that will increase ART's stable income and further strengthen the resilience of our portfolio, demonstrating our focus to deliver long-term value for our Stapled Securityholders. The acquisition will enhance our geographically diverse portfolio while deepening our presence in our key markets of Australia, France, Japan, USA and Vietnam. The addition of the five rental housing properties in Japan and a student accommodation property in the USA will increase the proportion of our longer-stay portfolio from 17% to 19% of ART's total portfolio value. This will bring us closer to our target of 25% - 30% for longer-stay assets in the medium term. The acquisition is also set to boost ART's proportion of green-certified properties, reinforcing our focus on sustainability. ART continues to seek yield-accretive investments while remaining committed to sustainability and taking a disciplined approach in managing our capital and costs."

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CapitaLand Investment Limited
Source:CapitaLand Investment Limited
Industry:Real Estate
Location:Singapore - Singapore - Singapore
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