Ascott Residence Trust proposes to acquire $318.3 million of assets in Australia, France, Japan, USA and Vietnam through the acquisition of 9 properties.
Ascott Residence Trust 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.
This acquisition is set to increase Ascott Residence Trust’s distribution by $9.2 million and strengthen 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 company is acquiring three serviced residences - Quest Cannon Hill in Brisbane, Australia and La Clef Tour Eiffel Paris in France that are on master leases, and Somerset Central TD Hai Phong City in Hai Phong, Vietnam. The five rental housing properties are located in Kyoto, Osaka, Hyogo and Nagoya.
The transaction is expected to be completed by November 2022, subject to Stapled Securityholders’ approval at an Extraordinary General Meeting to be held on 9 September 2022. The acquisition is to be funded by debt and/or proceeds from a private placement. With Ascott Residence Trust’s longer-stay portfolio comprising 19% of its total portfolio value and the strength of its balance sheet, ART is also resilient against any potential economic volatility.
The acquired properties will increase the proportion of the company’s green-certified properties from approximately 35% to 38% of its global portfolio by square metre. Quest Cannon Hill, La Clef Tour Eiffel Paris, Somerset Central TD Hai Phong City and Standard at Columbia are expected to be green-certified before the end of 2023.
They will contribute to Ascott Residence Trust’s sustainability targets of greening 50% of its global portfolio by 2025 and 100% of its global portfolio by 2030.