CapitaLand Ascott Trust (CLAS) is to acquire three lodging assets in London, Dublin and Jakarta worth S$530.8m (€361m) from its sponsor.
The properties are The Cavendish London in London, the Temple Bar Hotel in Dublin, and the Ascott Kuningan Jakarta, a serviced residence in Jakarta.
The trust intends to raise at least S$300m via a private placement and a non-renounceable preferential offering to partially fund the acquisition.
Serena Teo, chief executive officer of the managers of CLAS, said: “Our accretive acquisition of the three prime lodging assets will enhance the quality and yield of the CLAS portfolio.
“They are well-positioned to capture travel demand, and the expected growth trajectory of these assets will continue to strengthen CLAS’s income streams.”
Teo said London had been one of the group’s stronger performing markets, while Jakarta had been an historically resilient market.
“Our entry to Ireland offers an additional boost to our revenue. Dublin is an attractive destination for leisure visitors, it is home to some of the world’s largest pharmaceutical companies, and it is one of the IT hubs of Europe.”
CLAS has an international portfolio of 107 properties with more than 19,000 units in 47 cities in 15 countries in Asia-Pacific, Europe and the US.
To read the latest edition of the latest IPE Real Assets magazine click here.
