CapitaLand Ascott Trust (CLAS) has agreed to sell Somerset Olympic Tower Tianjin in China as part of its plan to recycle capital and improve returns for its investors.
The lodging trust said the 185-unit apartment property will be divested to an unrelated third party at above book value, “unlocking gains for CLAS’ stapled securityholders”. Financial details were undisclosed.
Somerset Olympic Tower Tianjin, which opened in 1998, is located in Heping District.
Serena Teo, CEO of CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management, the managers of CLAS, said: “We continually reconstitute the CLAS portfolio by divesting mature properties such as Somerset Olympic Tower Tianjin and redeploying the proceeds towards more optimal uses.”
Teo said the trust’s properties in China contributed 1.4% to its total gross profit during the first half of 2024.
“The divestment of Somerset Olympic Tower Tianjin will have minimal impact on our gross profit. Post divestment, we will have four properties in China.
“With CLAS’s strong financial position, we stand ready to capture opportunities to deliver accretive growth for our stapled securityholders,” Teo added.
Prior to the divestment of Somerset Olympic Tower Tianjin, CLAS had sold S$400m (€280.8m) worth of assets in the year-to-date period.
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