CapitaLand Ascott Trust (CLAS) has successfully completed the divestment of four mature serviced residences located in the France region. The properties, including Citadines Croisette Cannes, Citadines Prado Chanot Marseille, Citadines Castellane Marseille and Citadines City Centre Lille, were sold to an unrelated third party for a total of 44.4 million euros (64.7 million Swedish dollars).
This strategic move, which saw properties sold at 63% above book value, is in line with CLAS's active portfolio reconstitution strategy aimed at delivering sustainable returns to its equity holders. Following the sale, CLAS retains 12 properties in France, mainly in Paris, some of which are undergoing asset enhancement initiatives to increase their value and profitability. Proceeds from the sale will be used in part to finance CLAS' recent proposed acquisitions in London, Dublin and Jakarta.
"This divestment is in line with our strategy to deliver sustainable returns to our investors by reallocating capital from mature properties to higher-yielding assets. The proceeds will be used for asset enhancement initiatives in Europe and to fund our recent acquisition projects in London, Dublin and Jakarta. Over the past three years, we have successfully disposed of properties at a premium to their book value and reinvested the proceeds in higher-yielding assets, thereby increasing our total distribution. With these new acquisitions, we expect to further increase our total distribution by S$13.5 million and our distribution per stapled security (DPS) by 1.8% on a pro forma basis for fiscal 2022." - Ms. Serena Teo, CEO of CapitaLand Ascott Trust Management Limited
In August 2023, CLAS signed a memorandum of understanding with its sponsor, The Ascott Limited (Ascott), for a proposed accretive acquisition of three lodging assets. The acquisitions include The Cavendish London, Temple Bar Hotel in Dublin and Ascott Kuningan Jakarta, with a combined property value of 530.8 million Swedish dollars. These transactions are part of CLAS's ongoing efforts to enhance its portfolio through higher-yield investments and asset improvement initiatives. In the first half of 2023, CLAS's DPS increased by 19% year-on-year to 2.78 cents.
CapitaLand Ascott Trust (CLAS) is the largest hospitality fund in the Asia-Pacific region, managing assets valued at S$8.1 billion as at June 30, 2023. CLAS specializes in investing in income-generating real estate, focusing on properties such as serviced residences, rental housing, student accommodation and other hospitality assets worldwide. It operates as a stapled group, comprising CapitaLand Ascott Real Estate Investment Trust (CapitaLand Ascott REIT) and CapitaLand Ascott Business Trust (CapitaLand Ascott BT). CLAS is managed by CapitaLand Ascott Trust Management Limited (manager of CapitaLand Ascott REIT) and CapitaLand Ascott Business Trust Management Pte. Ltd (fiduciary manager of CapitaLand Ascott BT). Both the manager and the trust manager are 100% subsidiaries of CapitaLand Investment Limited, a leading global real estate investment manager with a strong presence in Asia.
