Ascott REIT sells six Japanese properties for S$52.6m

Visual from AscottREIT page

Singapore listed Ascott Residence Trust or Ascott REIT, has reached a deal to sell six properties in Japan for JPY4.48 billion (S$52.6 million).

These properties are currently held by its subsidiary ARC-CapitaLand Three Tokutei Mokuteki Kaisha (TK3). At the same time, TK3 will continue to own five other properties in Japan.

Explaining the rational for the sale, Ascott REIT said: “The properties are currently operated as rental housing. The sale is in line with Ascott REIT’s active asset management strategy to unlock the underlying value of the properties, which offers limited growth and re-deploy proceeds in other higher yielding assets to enhance Ascott REIT’s portfolio. Moreover, the properties are more than 10 years old and are located in regional cities of Japan where there is limited potential upside. Given the current strong investor demand for rental housing properties, it is an opportune time for Ascott REIT to divest these properties at an attractive price.”

The transaction price is 12.5 per cent above the valuation of the properties as at 30 June 2015. The deal will result in a net gain of approximately JPY288.9 million (equivalent to approximately S$3.4 million).

“Net sale proceeds may be used for asset enhancement, capital expenditure, funding potential acquisitions, other general corporate purposes and/or distribution of any part of the net gain to Unitholders,” the REIT said in a regulatory filing.

In June 2015, Ascott Reit, which is an indirect unit of Capital Land Limited, had successfully raised S$250 million ($186.2 million) from the issuance of perpetual securities, which received strong investor participation with a four-time oversubscription. The proceeds from the securities, whose distribution rate was fixed at 4.68 per cent per annum, will be use to fund potential acquisitions in the future, the trust management firm had said at that time.

In the same month, the REIT also acquired three quality serviced residences and four rental housing properties in Australia and Japan for S$298.3 million at an EBITDA yield of 5.1 per cent. Recently, it forayed into the United States of America by acquiring a hotel in New York Times Square for $163.5 million.

In October 2014, it had acquired a hotel in Tokyo, Japan at a price of JPY8 billion (approximately S$95.2 million), its second buy in Japan last year.

Also Read: 

Ascott Reit forays into US by acquiring hotel in Times Square for $163.5m

Ascott Reit to acquire 7 assets in Australia and Japan for S$298.3m

Ascott REIT raises $186m via perpetual securities, to fund potential acquisitions

Ascott acquires Japanese hotel for S$95-m

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.