Singapore’s Ascott REIT to acquire Sydney’s Felix Hotel for $43m

Felix Hotel's Sky Lobby and Reception.

Singapore-based Ascott Resident Trust (Ascott REIT) announced that it is acquiring the 150-room Sydney-based Felix Hotel for A$60.6 million ($43 million), making it Ascott REIT’s first business hotel in Australia.

The target property, which was completed and opened in February 2018, is adjacent to another property owned by Ascott REIT – the 91-unit Quest Mascot – and will be rebranded as Citadines Connect Sydney Airport when the acquisition is completed in May.

SGX-listed Ascott REIT said the acquisition of Felix Hotel will bolster its portfolio in Australia to over 900 units across six properties. The acquisition will be funded by bank loans, divestment proceeds, or a combination of both.

“This acquisition will deepen Ascott Reit’s presence in the stable and resilient market of Australia, adding to our portfolio a quality property that provides good yield in the highly sought-after Sydney market,” said Ascott Residence Trust Management Ltd (ARTML) Chairman Bob Tan.

Ascott REIT is managed by ARTML, an indirect wholly owned subsidiary of CapitaLand Limited, one of Asia’s largest real estate companies.

Tan adds that the acquisition will further strengthen Ascott REIT’s investment in developed markets, which collectively account for almost 80 per cent of its asset value.

Ascot REIT, he said, will continue to seek opportunities in key markets – Australia, Japan- Europe, and the US – to deliver strong yield and growth in distribution income for unitholders.

The 12-storey Felix Hotel, to be rebranded as Citadines Connect Sydney Airport, has 150 rooms that range from 18-square-meter to 40-square-meter units. It will be Ascott REIT’s first property to be managed by its sponsor, The Ascott Limited.

Ascott REIT was established with the objective of investing primarily in real estate and real estate-related assets. Its asset size has grown to S$5.3 billion ($3.9 billion) since it was listed on the SGX in March 2006. The company’s international portfolio comprises 73 properties in 37 cities across 14 countries in Asia, Europe, and the US.

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