CapitaLand Ascott Trust Proposes S$530.8 Million Acquisition of Three Properties in London, Dublin, and Jakarta
CapitaLand Ascott Trust (Ascott), a leading global lodging REIT, has proposed a S$530.8 million acquisition of three properties in London, Dublin, and Jakarta.
The properties are:
- The Ascott London St. Paul’s, a 437-unit serviced apartment property located in the heart of London’s financial district.
- The Ascott Dublin Pearse Street, a 235-unit serviced apartment property located in Dublin’s city center.
- The Ascott Kuningan Jakarta, a 362-unit serviced apartment property located in Jakarta’s central business district.
The acquisition is expected to close in the second quarter of 2023. Ascott said that the acquisition would strengthen its presence in key gateway cities and provide long-term growth opportunities. The properties are all well-located and have strong track records. The acquisition is expected to be accretive to Ascott’s earnings per unit.
The acquisition is being funded by a combination of cash on hand and a S$300 million placement of new stapled securities. The placement is expected to close in tandem with the acquisition.
The acquisition is subject to customary closing conditions, including the approval of Ascott’s unitholders.
Commentary
The acquisition of these three properties is a significant step for Ascott as it continues to expand its global footprint. The properties are all located in key gateway cities with strong tourism and business demand. They are also well-managed and have strong track records. The acquisition is expected to be accretive to Ascott’s earnings per unit, and it is likely to boost the trust’s appeal to investors.
The acquisition is also a sign of Ascott’s confidence in the future of the serviced apartment sector. The sector has been growing steadily in recent years, and it is expected to continue to grow in the coming years. Ascott’s acquisition of these three properties will give it a strong presence in some of the most important markets for the serviced apartment sector.
Overall, the acquisition of these three properties is a positive development for Ascott. It is a strategic move that will strengthen the trust’s position in key markets and boost its earnings potential. It is also a sign of Ascott’s confidence in the future of the serviced apartment sector.
