Ascendas Hospitality Trust has axed its plan to acquire a serviced residences property in Melbourne, Australia for AUD120 million.

The trust first announced in December 2015 that it has entered into an agreement with UEM Sunrise for the acquisition, and paid deposit of AUD5 million.

The acquisition has been terminated as both parties were not able to resolve “issues relating to the specifications and the condition of the property”, said Ascendas Hospitality Trust in a filing after the close of trading on 13 September.

Pursuant to the deed of termination signed on the same day, Ascendas Hospitality Trust will recover the deposit paid, with an agreed compensation sum to cover expenses incurred.

The termination is not expected to have any material adverse impact on the net property income, and distributions for Ascendas Hospitality Trust for the financial year ending 31 December 2019, the company added.

It also not expected to have any impact on the terms of the proposed combination of Ascott Residence Trust (Ascott REIT) and Ascendas Hospitality Trust that was announced on 3 July 2019.