Singapore-listed hospitality REIT Ascott Residence Trust (SGX:A68U) is looking to acquire its first serviced residence in Kuala Lumpur, Malaysia as well as Wuhan and Xi’an in China for a total purchase price of SGD173.9 million.
The properties to be acquired are the 207-unit Somerset Ampang Kuala Lumpur for MYR175 million (SGD67.4 million), the 249-unit Citadines Zhuankou Wuhan and the 251-unit Citadines Gaoxin Xi’an for RMB252 million (SGD51.4 million) and RMB270 million (SGD55.1 million) respectively. The three serviced residences will continue to be managed by Ascott.
Somerset Ampang Kuala Lumpur is said to be near several embassies and office buildings such as Petronas Twin Towers, Menara Citibank and Menara ExxonMobil as well as shopping malls such as Suria KLCC and Ampang Park Shopping Complex while the Citadines Zhuankou Wuhan and Citadines Gaoxin Xi’an are said to be near an economic development zone and high-tech industries zone respectively.
This will be the REIT’s first serviced residences in Kuala Lumpur.
A statement released by the REIT on 7 July indicated that it expects the acquisition to increase FY 2013 distribution per unit by 1.2% from 8.71 Singapore cents to 8.81 Singapore cents on a pro forma basis.
Ascott REIT will seek Unitholders’ approval for the transactions at an extraordinary general meeting to be held on 31 July 2014.
Units of Ascott REIT closed the trading day at its highest since November 2013, ending at SGD1.25 on the Singapore Exchange.