Ascott REIT completes major European purchase

Singapore's Ascott Residence Trust said that it has completed the acquisition of 28 serviced residence properties in Europe and Asia for a total of S$970 mln (EUR 537 mln) from its parent group. The properties, including 3,347 units, are located in France, UK, Germany, Belgium and Spain, with two assets being located in Singapore and Vietnam.

Ascott is the world's largest international serviced residence owner-operator with over 20,000 units in Asia Pacific, Europe and the Gulf region. Ascott Residence Trust is the company’s tax-efficient real estate investment trust (REIT).

'With the addition of the European properties, the group's income stability is enhanced through further diversification across geographies, and property and economic cycles. The income stability also arose from the master lease rentals in France and Germany, and minimum guaranteed income in the UK, Belgium and Spain,' said Lim Jit Poh, Chairman of Ascott Residence Trust Management.

'We will continue to seek yield-accretive acquisitions in Singapore, China, Vietnam and the UK. We will also explore opportunities in new emerging markets,' he added.

The operation almost doubles the size of the Asian REIT's portfolio, which now comprises 65 properties with 6,681 apartment units in 12 countries. The company first announced it planned to do the acquisition in August this year.