Singapore-based hospitality REIT Ascott Residence Trust (Ascott REIT) (SGX: A68U) has acquired a hotel in Tokyo, Japan for JPY8 billion (SGD95.2 million) in what has become its sixth acquisition for 2014.
According to the REIT, the acquisition is expected to be yield accretive and is expected to increase Ascott REIT’s FY 2013 distribution per unit by 0.6% from 8.40 to 8.45 Singapore cents on a pro forma basis.
The 206-unit property, Best Western Shinjuku Astina, is said to be located in the heart of Shinjuku. The property also houses three restaurants and a convenience store. The hotel will be converted and rebranded into a Citadines-branded serviced residence to be managed by The Ascott Limited in 2015.
Ronald Tay, CEO for the REIT’s manager described the acquisition as one that would benefit from greater operational efficiency and economy of scale given that Ascott REIT is also managing our three serviced residences in Japan. “It has been operating above 90% occupancy with consistent growth in average daily rate”, he added.
The REIT has not given details on how the acquisition will be funded. Units of Ascott REIT are currently listed on the Singapore Exchange at SGD1.21.