Ascott Residence Trust (ART) is offering to acquire nine properties in five countries from its sponsor, Ascott Limited, for a total of S$318.3 million (€226 million).
The most expensive asset is the serviced apartment building La Clef Tour Eiffel Paris, worth €103.7 million. This will be followed by a portfolio of five residential buildings in Japan for JPY7bn (€54m). The remaining assets are located in Australia and the United States.
Serena Teo, CEO of Ascott Residents Trust Management and Ascott Business Trust Management, told a press conference that the investments were “rooted” in Asia-Pacific.
After the transaction, some 62% of Ascott rooms would be located in Asia-Pacific, including 19% in Europe and the United States.
Teo said the portfolio would improve diversification and there would be no concentration of risk.
The addition of the five rental properties in Japan and one student accommodation in the United States would increase the proportion of the Trust’s extended stay portfolio from 17% to 19% of the total value of ART’s portfolio.
“This will bring us closer to our target of 25% to 30% for long-term assets in the medium term,” she said.
The transaction is expected to be financed through debt and a private placement, she said.
The trust issued the placement to raise S$150 million.
To read the latest edition of the latest IPE Real Assets magazine, click here.