Ascott Residence Trust (Ascott REIT) has divested its stake in a serviced residence property known as Somerset West Lake Hanoi for USD10 million.
The divestment has been executed by disposing its interests in a target company.
This target company owns 70.0% of the issued share capital of a Vietnamese project company known as West Lake Development Company Limited, which in turn owns 100% of Somerset West Lake Hanoi.
The remaining 30.0% of the issued share capital of the project company is held by Hanoi Housing Development and Investment Corporation.
The value of the property as at 30 June 2019 was SGD13.3 million, based on a valuation conducted by HVS using the discounted cash flow approach.
“The transaction is in the ordinary course of Ascott REIT’s business and is not expected to have any material effect on the net tangible assets per share and earnings per share of Ascott REIT for the current financial year", said the REIT’s manager.