Ascott Residence Trust proposes $232m acquisition of assets in 5 countries

Ascott Residence Trust (ART) is proposing the acquisition of nine quality-serviced residences, rental housing and student-accommodation properties across Australia, France, Japan, the United States and Vietnam, from its sponsor, The Ascott Limited.

At an estimated total capitalized cost of S$318.3 million ($232 million), the yield-accretive acquisition is set to increase ART’s distribution by S$9.2 million ($6.7 million) and its pro-forma FY 2021 Distribution per Stapled Security by 2.8 percent.

The acquisition is expected to strengthen ART’s presence in existing markets. The assets are predominantly located in Asia Pacific with seven of the assets in Australia, Japan and Vietnam, and two in France and the United States. The acquisition of the nine properties with a total of 1,018 units will grow ART’s total assets to S$8.3 billion ($6.1 million) as of Dec. 31, 2021, on a pro-forma basis, further consolidating ART’s position as Asia Pacific’s largest hospital