“We are divesting Citadines Mount Sophia Singapore
at close to SG$1 million per key, which is a significant premium
to book value,” said Serena Teo, CEO of CapitaLand Ascott Trust
Management. “Including Citadines Mount Sophia Singapore, CLAS has
announced divestments of SG$408.1 million of assets at a premium
to book value in the last eight months. The divestment of 10
mature assets [four properties in regional France, two properties
in Australia, three properties in Japan and one property in
Singapore] will unlock SG$38.9 million in gains, at an average
exit yield of about 3.8%. We aim to use the capital to reduce
debt, fund our asset enhancement initiatives (AEI) or redeploy it
into higher-yielding investments to increase the returns of our
portfolio. The divestments can offer CLAS greater financial
flexibility, potentially lowering our gearing by close to 2
percentage points.”
CLAS also completed the divestment of
Courtyard by Marriott Sydney-North Ryde, one of two mature hotels
in CLAS’ divestment pipeline in
Australia, on 31 January 2024.
Divestment of the other property, Novotel Sydney
Parramatta is expected to be completed in Q3 2024.
“CLAS completed the acquisition of four
assets [The Cavendish London, Temple Bar Hotel in Dublin, Ascott
Kuningan Jakarta and Teriha Ocean Stage] in the last three months at a higher entry yield and we
look to expand our portfolio opportunistically with more
yield-accretive assets,” added Ms Teo. “Over the past three years, distribution
income gained from our investments has more than replaced the
distribution income from the properties that were divested. CLAS
also has eight properties [The Robertson House by The Crest
Collection, Citadines Holborn-Covent Garden London, Citadines Les
Halles Paris, Citadines Kurfürstendamm Berlin, La Clef Tour Eiffel
Paris, Temple Bar Hotel, The Cavendish London and Novotel Sydney
Central] undergoing or will undergo AEI. Through
our active portfolio reconstitution efforts and AEI plans, we
continue to strengthen our portfolio to deliver long-term value to
our Stapled Securityholders.”
Post-divestment, CLAS will have four lodging properties in
Singapore. CLAS has three operational properties – Ascott Orchard
Singapore, lyf one-north Singapore and The Robertson House by
The Crest Collection. Currently under development, the
192-unit Somerset serviced residence at the popular riverfront
lifestyle and entertainment Clarke Quay precinct remains on
track for completion in H2 2025.
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