CapitaLand Ascott Trust (CLAS) has sold an asset in Singapore to an unrelated third party for S$148m (€102m), or 19.4% above book value.
The purchaser paid close to S$1m per key for the 154-room property, trading as Citadines Mount Sophia Singapore.
This latest divestment brings the total asset disposals by the listed trust to S$408.1m in the past eight months. Of the 10 assets disposed, four were in regional France, two in Australia, three properties in Japan and one in Singapore.
“The divestment is part of our active portfolio reconstitution strategy,” said Serena Teo, CEO of CLAS. “CLAS completed the acquisition of four assets in the last three months at a higher entry yield and we look to expand our portfolio opportunistically with more yield-accretive assets.”
“We aim to use the capital to reduce debt, fund our asset enhancement initiatives or redeploy it into higher-yielding investments to increase the returns of our portfolio,” she said.
The divestments allowed the trust greater financial flexibility, potentially lowering its gearing by close to 2%.
Post-divestment, SGX-listed CLAS will have four lodging properties in Singapore with three operational properties and one under development.
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