Singapore-listed hospitality REIT, Ascott Residence Trust (Ascott REIT) (SGX:A68U) announced on 2 november that it has divested a serviced residence property in the Philippines for PHP240.0 million (SGD7.2 million).

The property, known as Salcedo Residences, consists of 71 condominium units and 71 parking slots and located a building known as Stamford Court-Salcedo Makati. The property was sold to Philippine company Infinity Primetowers Makati.

Independent valuation of the property conducted by CB Richard Ellis Philippines prices it at PHP 34.0 million (SGD1.0 million) as at 30 June 2015, using the discounted cashflow method, said the REIT. The valuation was commissioned by DBS Trustee Limited as part of the REIT’s half year valuation exercise of its portfolio of properties.

Ascott REIT has described the sale as in line with its active asset management strategy to unlock the underlying value of properties which offer limited growth and re-deploy proceeds to other higher yielding assets to enhance Ascott REIT’s portfolio.

“The Salcedo Residences Units are more than 10 years old and due to the inability to obtain the necessary consensus to renovate the shared common areas, potential upside is limited”, said the REIT in its announcement on the divestment. “Given that the sale price is higher than the current valuation, the manager believes that it is an opportune time for Ascott REIT to divest the Salcedo Residences units”, it added.

Units of Ascott REIT last changed hands on the Singapore Exchange at SGD1.21.