Ascott Residence Trust (ART) is proposing to acquire nine properties across five countries from its sponsor, Ascott Limited, for a total of S$318.3m (€226m).
The most expensive asset is the €103.7m La Clef Tour Eiffel Paris serviced apartment block. This will be followed by a portfolio of five residential buildings in Japan for JPY7bn (€54m). The remaining assets are located in Australia and the US.
Serena Teo, CEO of Ascott Residents Trust Management and Ascott Business Trust Management, told a media briefing the investments were “anchored” in Asia-Pacific.
Post-transaction, some 62% of Ascott rooms would be located in Asia-Pacific, with 19% each in Europe and the US.
Teo said the portfolio would enhance diversification, and that there would be no concentration of risk.
The addition of the five rental housing properties in Japan and a student accommodation property in the US would increase the proportion of the trust’s 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,” she said.
It is intended that the transaction will be financed by debt and a private placement, she said.
The trust has issued the placement to raise S$150m.
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