Singapore: Ascott Residence Trust (ART) plans to acquire nine assets from its sponsor, The Ascott Limited, at an estimated cost of S$318.3 million (£191 million).
The assets include serviced residences, rental housing and student accommodation properties across five countries.
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. Post-acquisition, ART’s portfolio will exceed 100 properties, with more than 18,000 units across 47 cities and 15 countries.
Serena Teo, CEO 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 per cent to 19 per cent of ART’s total portfolio value. This will bring us closer to our target of 25 to 30 per cent 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.”
The transaction is expected to be completed by November 2022.
The properties in question are Quest Cannon, Brisbane, Australia; La Clef Tour Eiffel Paris, France; Somerset Central TD Hai Phong City, Vietnam (all serviced resdiences); S-Residence Shukugawa, Marunouchi Central Heights, S-Residence Namba Viale, S-Residence Gakuenzaka, all in Japan and all BTR; and Standard at Columbia, South Caroline, USA (student).
