Ascendas Hospitality Trust property in Singapore Park Hotel Clarke QuayAscendas Hospitality Trust's property in Singapore, Park Hotel Clarke Quay

The manager of Singapore-listed Ascendas Hospitality Trust (SGX:Q1P) disclosed on 23 December that it is currently in talks with an unnamed party with regards to an offer for a buyout of all issued stapled securities in the trust.

“The managers are undertaking this strategic review following receipt recently of an unsolicited expression of interest relating to the possible acquisition of all the stapled securities issued by Ascendas Hospitality Trust”, it said in the announcement which came after a request for a temporary trading halt on the Singapore Exchange.

“The managers have therefore initiated discussions with various parties to evaluate the viability of the expression of interest”, it added.

Ascendas Hospitality Trust currently has a portfolio of 11 properties across Australia (6), China (2), Japan (2) and Singapore (1). The trust, which premiered on the Singapore Exchange in July 2012, has to date fell by about 17% from its IPO price of SGD0.878.

“The managers wish to emphasise that the discussions are presently at an early stage. Accordingly, there is no certainty that any definitive agreement will be entered into and there is no certainty that any transaction will materialise from the current discussions”, the trust added.

Units of Ascendas Hospitality Trust jumped 5% at the close of the trading day on 23 December to finish at SGD0.73 from SGD0.725 previously.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.