CapitaLand Ascott Trust (CLAS) has divested three hotels in Japan for JPY10.7bn (€71m) to an unrelated third party.

The three properties – Hotel WBF Honmachi, Hotel WBF Kitasemba East and Hotel WBF Kitasemba West – are being sold at about 15% above book value. 

Serena Teo, chief executive officer of CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management (the manager of SGX-listed CLAS), said the disposal of the three properties was part of the trust’s active portfolio reconstitution strategy.

“The properties are situated outside the prime districts in Osaka and the divestment enables CLAS to unlock the value of the properties, redeploying capital to assets and/or asset enhancement initiatives that can generate stronger yields, uplifting the overall value of our portfolio.”

Teo said Japan remained an attractive market for the trust. “The overall positive demand-supply dynamics bode well for our portfolio of hospitality and longer-stay assets in Japan.”

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