Ascott Reit buys three serviced residences

George Sell By George Sell
25 June 2015 | Updated 25 June 2015

Singapore: Ascott Residence Trust (Ascott Reit) has acquired three serviced residences and four rental housing properties in Australia and Japan.

It bought the properties for S$298.3 million at an EBITDA yield of 5.1 per cent.

The properties are the 380-unit Citadines on Bourke Melbourne from The Ascott Limited (Ascott) for AUD158.5 million (S$167.6 million), the remaining 40 per cent interest in the 160-unit Citadines Shinjuku Tokyo, and the 124-unit Citadines Karasuma-Gojo Kyoto for JPY3,040 million (S$33.7 million) and JPY1,440 million (S$16.0 million)respectively from Ascott.

The acquisitions are expected to increase Ascott Reit's distribution income for FY2014 by S$3.9 million. The three serviced residences will continue to be managed by Ascott.

In addition, Ascott Reit will acquire four rental housing properties in Osaka for JPY7,300 million (S$81.0 million4 ). Ascott currently holds an 18.9% stake in the four rental housing properties.

Lim Jit Poh, Ascott Residence Trust Management Limited's chairman, said: "These yield accretive acquisitions will expand Ascott Reit's portfolio in the stable and established markets of Australia and Japan where there is significant potential for us to grow. Australia is one of the top 10 global destinations for foreign direct investment and ease of doing business. International visitor arrival numbers of both Australia and Japan reached record high last year. Japan's government is aiming for 20 million visitors by the 2020 Tokyo Olympic Games and has also created special zones to attract foreign companies to set up offices. Hence, we expect strong demand for these properties which will further enhance Ascott Reit's portfolio."

www.ascottreit.com

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