Ascott Residence Trust (Ascott Reit) has acquired a hotel in Tokyo, Japan at a price of JPY8 billion (approximately S$95.2 million), its second buy in Japan this year, and its sixth acquisition this fiscal, the company said in a statement.
So far this fiscal, Ascott Reit had acquired a rental housing property in Fukuoka, Japan and four serviced residences in Kuala Lumpur, Malaysia as well as Dalian, Wuhan and Xi’an in China.
The accretive acquisition at an EBITDA yield of 4.3% is expected to increase Ascott Reit’s FY 2013 distribution per unit from 8.40 cents to 8.45 cents on a pro forma basis, its company’s statement added.
In addition to its latest acquisition, Ascott Reit currently owns three serviced residences (Citadines Shinjuku Tokyo, Somerset Azabu East Tokyo and Citadines Karasuma-Gojo Kyoto) as well as 31 rental housing properties with 2,284 apartment units across seven major cities in Japan.
Ascott Reit to raise $118-m from perpetual securities
Ascott Residence Trust (Ascott Reit) plans to raise S$150 million ($118 million) and it has priced its first perpetual securities at a fixed rate of 5 per cent per annum.
Proceeds from the issuance of the perpetual securities will be used to fund potential acquisitions and for general corporate funding purposes, Ascott Reit said in a statement.
DBS Bank Ltd and J.P. Morgan (S.E.A.) Limited are the joint lead managers and joint bookrunners for the issuance of the perpetual securities.
According to Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, the issuance of perpetual securities was part of Ascott Reit’s capital management strategy to tap diversified funding sources.
“It is an alternative form of equity fund raising for Ascott Reit and will strengthen our balance sheet. Moreover, it will enhance our financial flexibility to tap future growth opportunities to optimise returns for Unitholders. The strong demand from investors shows their confidence in Ascott Reit’s growth strategies,” he added.