CapitaLand Ascott Trust (CLAS) has divested the Citadines Karasuma-Gojo Kyoto apartment building in Japan to an unrelated third party for about JPY6.18bn (€37m).

The 124-unit property was sold at a premium of 40.1% above book value.

Serena Teo, CEO of CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management, said the mature property had reached the optimal stage of its lifecycle.

Teo said: “We plan to redeploy the divestment proceeds into higher-yielding investments to further grow our returns to stapled securityholders.”

She added that Japan remained a key market for CLAS and was one of the chain’s performing markets, and that “we continue to seek opportunities to strengthen our portfolio in Japan”.

Post-divestment, CLAS will have a portfolio of 29 properties comprising a mix of serviced residences, hotels, rental housing and student accommodation properties in Japan.

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