Ascott REIT steps up growth in Asia Pacific
Ascott Residence Trust (Ascott Reit) is stepping up its growth by acquiring three quality serviced residences and four rental housing properties in Australia and Japan for S$298.3 million.
These accretive acquisitions are expected to increase Ascott Reit’s distribution income for FY 2014 by S$3.9 million and distribution per unit by 2.9 per cent from 8.20 cents to 8.44 cents on a pro forma basis.
Ascott Reit will acquire the 380-unit Citadines on Bourke Melbourne from The Ascott Limited
Mr Lim Jit Poh, Ascott Residence Trust Management Limited’s (ARTML) Chairman, said: “These yield accretive acquisitions will expand Ascott Reit’s portfolio in the stable and established markets of Australia and Japan where there is significant potential for us to grow.”
“Australia is one of the top 10 global destinations for foreign direct investment and ease of doing business. International visitor arrival numbers of both Australia and Japan reached record high last year.”
Mr Ronald Tay, ARTML’s Chief Executive Officer, said: “Japan assets have been delivering stellar operational performance for the past two years. Stronger operations of our serviced residences in Japan grew revenue per available unit (RevPAU) by 12.1 per cent.
“As the capital city of Victoria and the second largest state in Australia, Melbourne accounts for approximately 22% of Australia’s economic activities and has an average economic growth of 2.9% over the past decade. Known for its ease of doing business, convenient access to the Asia-Pacific region and the city’s packed events calendar, we expect high accommodation demand from business and leisure visitors.”
In Australia, Ascott Reit currently owns one serviced residence in Perth (Citadines St Georges Terrace Perth) and three serviced residences under the Quest brand in Greater Sydney.
In Japan, Ascott Reit currently owns three serviced residences (Somerset Azabu East Tokyo and 60.0% interest each in Citadines Shinjuku Tokyo and Citadines Karasuma-Gojo Kyoto) as well as 31 rental housing properties with 1,921 apartment units across seven major cities.
Ascott Reit will seek Unitholders’ approval for the transactions at an extraordinary general meeting to be held on 24 July 2015.