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CapitaLand Ascott Trust to divest Citadines Karasuma-Gojo Kyoto hotel in Japan
Transactions - OCTOBER 11, 2024

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CapitaLand Ascott Trust to divest Citadines Karasuma-Gojo Kyoto hotel in Japan

by Kali Persall

CapitaLand Ascott Trust (CLAS) has divested the Citadines Karasuma-Gojo Kyoto hotel in Japan to an unrelated third party for about ¥6.18 billion ($42 million).

CLAS said the property was sold at 40.1 percent above book value at an exit EBITDA yield of about 0.3 percent.

The 124-unit hotel is located near the business district and Kyoto’s tourist belt.

Serena Teo, CEO of CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management, said the mature property has reached the optimal stage of its lifecycle, and the company plans to redeploy the divestment proceeds into higher-yielding investments to grow returns to Stapled Securityholders.

Such investments include the four-star lyf Funan Singapore hotel, which CLAS announced on Oct. 1 it plans to acquire in partnership with Ascott Serviced Residence Global Fund for an agreed property value of S$263 million ($201 million).

“The divestment of Citadines Karasuma-Gojo Kyoto is in

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